Malaysian Journal of Mathematical Sciences, December 2020, Vol. 14(S)
Special Issue: 2nd International Conference on Applied & Industrial Mathematics and Statistics 2019 (ICoAIMS 2019)

Evaluation on the Financial Performance of Technology Companies in Malaysia with Zmijewski Model

Lam, W. H., Yeoh, H. B., Lam, W. S., and Lai, J. X.

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Received date: 15 January 2020
Accepted date: 15 October 2020

In the era of Industrial Revolution 4.0 (IR 4.0), Information and Communications Technology (ICT) sector provides cost effective solution to improve overall organizational performance as well as support sustainable national economic growth of emerging economies like Malaysia. On top of it, local ICT related companies, especially those are listed in Bursa Malaysia, are expected to work and contribute toward the accomplishment of vision 2050 in transforming Malaysian into smart communities. At the same time, the performance of these companies has to be evaluated as they will become financially distressed if they are not financially stable. The objective of this paper is to evaluate the financial performance of technology companies in Malaysia using Zmijewski model. The model uses financial ratio analysis that measures the performance, leverage and liquidity of these companies. The data of this study comprises technology-based companies that are listed in Malaysia's stock market. The period of this study is from year 2013 to 2017. The results indicate the financial condition of these companies based on the Zmijewski value computed. This study is significant because it assesses the financial condition of the technology companies in Malaysia. As a result of it, stakeholders will initiate proactive and preventive measures to promote the economic growth of technology sector in Malaysia.

Keywords: Zmijewski model, Financial performance, Technology companies



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