Cash Flow Ratios and Business Failure of Healthcare Firms in Nigeria (Published)
The study examined cash flow ratios as predictors of business failure of healthcare firms in Nigeria. The objectives of the study were to ascertain the effect of operating cash flow ratio, cash flow to debt ratio, and price to cash flow ratio on Altman’s zeta score of healthcare firms in Nigeria. The study adopted ex-post-facto research design, covering a period of 10 years (from 2013 to 2022). Secondary data used for the study were extracted from annual reports and accounts of selected healthcare firms listed on the Nigeria Exchange Group (NGX) from 2013 to 2022. Multiple regression technique was used to test the hypotheses. The result of the test of hypotheses revealed that the operating cash flow ratio has a statistically non-significant negative effect on the Altman z-score of healthcare firms in Nigeria (p-value = 0.3397). The finding also indicates that the cash flow to debt ratio has a statistically non-significant negative effect on the Altman z-score of healthcare firms in Nigeria (p-value = 0.2937). Lastly, the finding reveals that the price to cash flow ratio has a non-significant positive effect on the Altman z-score of healthcare firms in Nigeria (p-value = 0.5281). The policy implications of these findings suggest that when assessing the financial health and bankruptcy risk of healthcare firms in Nigeria, policymakers and regulators should consider factors beyond cash flow ratios. It was recommended therefore that healthcare firms in Nigeria should diversify their sources of cash flow beyond operating cash flow to improve financial stability and mitigate bankruptcy risk. Healthcare firms should have a careful evaluation of debt management practices is necessary to maintain a healthy balance between cash flow generation and debt obligations in healthcare firms. Market sentiment reflected in the price to cash flow ratio should not be relied upon as the sole indicator of financial stability. Healthcare firms should prioritize fundamental financial and operational indicators to assess their financial health and mitigate bankruptcy risk.
Keywords: Altman’s zeta score, Nigeria, business failure, cash flow ratios, cash flow to debt ratio, healthcare firms, operating cash flow ratio, price to cash flow ratio
Effects of Effectuation, Cognitive Adaptability, Learning from Business Failure on Mindset of Students (Private Higher Education in Medan) (Published)
The purpose of this study is to determine the effects of effectuation, cognitive adaptability, learning from business failure on entrepreneurship mindset of students at private higher education in Medan. The research method used was descriptive analysis and quantitative analysis using Ordinary Least Square (OLS) method with a multiple linear regression test with the sample of 273 respondents, and it was conducted validity and reliability tests to determine the research questionnaire items. The study used purposive sampling technique. The research results prove that simultaneously effectuation variable, cognitive adaptability variable and learning from business failure variable provide significant and positive effects on entrepreneurship mindset of students at private higher education in Medan. Partially, cognitive adaptability variable and learning from business failure variable provide significant and positive effects on entrepreneurship mindset of students at private higher education in Medan. The adjusted R-square value is 0.279 or 27,9%.
Keywords: Effectuation, business failure, cognitive adaptation