BANKRUPTCY PREDICTION: SMES IN THE HOSPITALITY INDUSTRY

The objectives of this study are to predict bankruptcy risk among SMEs in the hospitality industry for a three-year horizon period and investigate factors that significant determining bankruptcy. contribution is essential as businesses dominated by SME operators. However, failure rate relatively high almost 50 percent establishments do not survive beyond five years operation. Stepwise logistic model was employed determine predictors could one year, two three before Return on assets firm age were found be all periods while other variables identified important at specific prior In addition return age, debt ratio total turnover one-year bankruptcy, no longer but current ratio, ownership concentration gender diversity significant. As additional namely debt-to-equity board size significant, ceased important. findings contribute limited literature predicting small firms providing empirical evidence from Malaysia.