Studying Bankruptcy of Companies Falling into the Liquidity Trap in Tehran Stock Exchange

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spelling	Studying Bankruptcy of Companies Falling into the Liquidity Trap in Tehran Stock Exchange Studying Bankruptcy of Companies Falling into the Liquidity Trap in Tehran Stock Exchange Improper working capital policies may put companies in a situation where they may have difficulty securing their cash resources; in the financial sector, this is called a liquidity trap. The liquidity trap implies the inability of companies to provide cash resources due to inappropriate working capital policies. Theoretically speaking, companies falling into the liquidity trap have difficulty in fulfilling their obligations and paying off debts, due to applying proper liquidity policies; resulting from lack of cash flows or cash outflows, due to the internal or external factors, they are subject to financial limitations and ultimately bankruptcy. The purpose of this study is to investigate whether the companies listed in the Tehran Stock Exchange that have been fallen in the liquidity trap, eventually go bankrupt; using the data of 206 companies in the period of 2008-2017 and based on the liquidity trap prediction model of Vakili Fard et al., the financial limitation prediction models of Kaplan and Zingales, Witedo and modified Kaplan and Zingales, as well as modified Altman bankruptcy prediction models and genetic algorithm, we examined this hypothesis. Confirming the research hypothesis, it was concluded that companies with liquidity trap go bankrupt, unless they reform or change their working capital policies. Hajipoor, Meysam Vakilifard, Hamidreza Mohammadi, Mehdi Talebnia, Godratolah Liquidity trap Bankruptcy Tehran Stock Exchange 8 SPE2 Núm. SPE2 , Año 2020 : Número especial: Prácticas de la psicología educativa en Europa y Medio Oriente Artículo de revista Journal article 2020-07-31T00:00:00Z 2020-07-31T00:00:00Z 2020-07-31 application/pdf Carrera de Psicología, Universidad San Ignacio de Loyola, Lima, Perú. Propósitos y Representaciones 2307-7999 2310-4635 https://revistas.usil.edu.pe/index.php/pyr/article/view/668 10.20511/pyr2020.v8nSPE2.668 https://doi.org/10.20511/pyr2020.v8nSPE2.668 eng https://creativecommons.org/licenses/by-nc-sa/4.0/ Propósitos y Representaciones - 2020 e668 e668 https://revistas.usil.edu.pe/index.php/pyr/article/download/668/1025 info:eu-repo/semantics/article http://purl.org/coar/resource_type/c_6501 http://purl.org/redcol/resource_type/ARTREF info:eu-repo/semantics/publishedVersion http://purl.org/coar/version/c_970fb48d4fbd8a85 info:eu-repo/semantics/openAccess http://purl.org/coar/access_right/c_abf2 Text Publication
institution	UNIVERSIDAD SAN IGNACIO DE LOYOLA
thumbnail	https://nuevo.metarevistas.org/USIL/logo.png
country_str	Perú
collection	Propósitos y Representaciones
title	Studying Bankruptcy of Companies Falling into the Liquidity Trap in Tehran Stock Exchange
spellingShingle	Studying Bankruptcy of Companies Falling into the Liquidity Trap in Tehran Stock Exchange Hajipoor, Meysam Vakilifard, Hamidreza Mohammadi, Mehdi Talebnia, Godratolah Liquidity trap Bankruptcy Tehran Stock Exchange
title_short	Studying Bankruptcy of Companies Falling into the Liquidity Trap in Tehran Stock Exchange
title_full	Studying Bankruptcy of Companies Falling into the Liquidity Trap in Tehran Stock Exchange
title_fullStr	Studying Bankruptcy of Companies Falling into the Liquidity Trap in Tehran Stock Exchange
title_full_unstemmed	Studying Bankruptcy of Companies Falling into the Liquidity Trap in Tehran Stock Exchange
title_sort	studying bankruptcy of companies falling into the liquidity trap in tehran stock exchange
title_eng	Studying Bankruptcy of Companies Falling into the Liquidity Trap in Tehran Stock Exchange
description_eng	Improper working capital policies may put companies in a situation where they may have difficulty securing their cash resources; in the financial sector, this is called a liquidity trap. The liquidity trap implies the inability of companies to provide cash resources due to inappropriate working capital policies. Theoretically speaking, companies falling into the liquidity trap have difficulty in fulfilling their obligations and paying off debts, due to applying proper liquidity policies; resulting from lack of cash flows or cash outflows, due to the internal or external factors, they are subject to financial limitations and ultimately bankruptcy. The purpose of this study is to investigate whether the companies listed in the Tehran Stock Exchange that have been fallen in the liquidity trap, eventually go bankrupt; using the data of 206 companies in the period of 2008-2017 and based on the liquidity trap prediction model of Vakili Fard et al., the financial limitation prediction models of Kaplan and Zingales, Witedo and modified Kaplan and Zingales, as well as modified Altman bankruptcy prediction models and genetic algorithm, we examined this hypothesis. Confirming the research hypothesis, it was concluded that companies with liquidity trap go bankrupt, unless they reform or change their working capital policies.
author	Hajipoor, Meysam Vakilifard, Hamidreza Mohammadi, Mehdi Talebnia, Godratolah
author_facet	Hajipoor, Meysam Vakilifard, Hamidreza Mohammadi, Mehdi Talebnia, Godratolah
topic	Liquidity trap Bankruptcy Tehran Stock Exchange
topic_facet	Liquidity trap Bankruptcy Tehran Stock Exchange
citationvolume	8
citationissue	SPE2
citationedition	Núm. SPE2 , Año 2020 : Número especial: Prácticas de la psicología educativa en Europa y Medio Oriente
publisher	Carrera de Psicología, Universidad San Ignacio de Loyola, Lima, Perú.
ispartofjournal	Propósitos y Representaciones
source	https://revistas.usil.edu.pe/index.php/pyr/article/view/668
language	eng
format	Article
rights	https://creativecommons.org/licenses/by-nc-sa/4.0/ Propósitos y Representaciones - 2020 info:eu-repo/semantics/openAccess http://purl.org/coar/access_right/c_abf2
type_driver	info:eu-repo/semantics/article
type_coar	http://purl.org/coar/resource_type/c_6501
type_version	info:eu-repo/semantics/publishedVersion
type_coarversion	http://purl.org/coar/version/c_970fb48d4fbd8a85
type_content	Text
publishDate	2020-07-31
date_accessioned	2020-07-31T00:00:00Z
date_available	2020-07-31T00:00:00Z
url	https://revistas.usil.edu.pe/index.php/pyr/article/view/668
url_doi	https://doi.org/10.20511/pyr2020.v8nSPE2.668
issn	2307-7999
eissn	2310-4635
doi	10.20511/pyr2020.v8nSPE2.668
citationstartpage	e668
citationendpage	e668
url2_str_mv	https://revistas.usil.edu.pe/index.php/pyr/article/download/668/1025
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