Using survival analysis to assess bankruptcies in Malaysia

In this study, survival analysis is employed to determine the trends of profile analysis and evaluate the survival rate of bankruptcies in Malaysia from years 2005 to 2015. Recent report states a total of 94,408 people involved in bankruptcy cases from year 2013 until August 2017; about 97% of these bankruptcies are caused by inability to repay installments for financial products. The rise in the number of companies that went bankrupt causes a decline in the number of listed companies in Malaysia. Therefore, this study was conducted to evaluate the survival analysis about the bankruptcies in Malaysia and uncover some trends. The results show a sharp rise in the number of bankruptcies and a slight drop in the number of listed companies in Malaysia in the interval year 2005-2015 as proved by the probability distribution function and survival function respectively. Meanwhile, Kaplan–Meier estimator shows a slight drop in the number of listed companies for Malaysia in the interval year 2005-2014. This indicates that despite the increased number of bankruptcies in Malaysia which may be caused by the global financial crisis in years 2007-2008, 75% of the listed companies in Malaysia still survive. Suggestions for future work are also briefly discussed.