Are the Ng-Thomas model's results consistent with the ALABIDILI model's results in evaluating the financial solvency of construction companies?

• Jasim Doach Daier ^[1] ; Albadran , Abdulkhaliq ; Rodin, Walid Maya ^[1]
  1. [1] College of Administration and Economics
• Localización: International Journal of Professional Business Review: Int. J. Prof.Bus. Rev., ISSN 2525-3654, ISSN-e 2525-3654, Vol. 7, Nº. 6, 2022
• Idioma: inglés
• Enlaces
  • Texto completo (pdf)
• Resumen

  • Purpose: This study sought to compare the following prediction models (Ng-Thomas & AL-Abidili) and the extent of the reliability of the results of each model in predicting the solvency of the Iraqi Contracting companies Registered in the Iraq Stock Exchange. It also sought to test the degree of congruence of the results of the two models.

      Theoretical framework: Contracting companies are of great importance to the country in general and to the economy in particular. That is why researchers have been developing a large and wide range of financial models as well as the necessary criteria for the purpose of predicting the financial situation of these companies through the extent of their ability to complete projects or to find the necessary solutions to financial problems before it gets worse.

        Design/methodology/approach: The financial statements were used to obtain the necessary data to calculate the ratios used in the two models. The analysis was conducted for a time series consisting of seven years, extending from 2011 - 2018. The Excel program was also used to calculate the variables of the two models, as well as the use of the (SPSS) package to test the hypotheses   Findings: The results showed the two models' ability to predict Iraqi contracting companies' solvency.  On the other hand, there was agreement in the results of the two models, with that model (AL-ABIDILI) The most accurate prediction was.

      Research, Practical & Social implications: The use of financial models, especially the financial models that have been prepared for contracting companies, gives a more accurate picture of the financial position of the companies and enables them to get rid of the evaluation problems that may occur if financial ratios are used and based on their interpretations.

      Originality/value:     models whose variables are highly dependent on the indicators of returns and profitability it models that greatly outperform the other models