Bankruptcies can be caused by many factors such as global financial crisis, poor companies and individual financing that can lead to bankruptcy. This study investigated the relationship between firm financial characteristics and control variable with corporate bankruptcy in Japan from 1991 to 2020. This study applied the ordinary least square method analysis. The results showed that retained earnings to total asset, total debt to total asset, and gross domestic product had significant impact on corporate bankruptcy in Japan. This study recommends for firms to assure the stability of profit and issue new or extra share to generate more cash flow. In addition, it is recommended that the governments help firms with insolvency relief tool such financial aid and ensure the stability of Japan’s gross domestic product to reduce the chance of bankruptcy.
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In-Text Citation: (Ma’in et al., 2022)
To Cite this Article: Ma’in, M., Junos, S., Tamizi, N. H. M., Iskanda, N. F. A., & Hanif, N. J. S. M. (2022). How Financial Ratio Can Predict The Corporate Bankruptcy in Japan. International Journal of Academic Research in Business and Social Sciences, 12(10), 2202– 2210.
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