The Study of Profit Quality in Distressed Financial Companies

Abstract

Profit, as the most important product of according information system shall be of acceptable quality. Profit quality is a very broad concept with various aspects. In according literature, non-manipulation of profit (lack of profit management) is deemed as one of the aspects of profit high quality. Therefore, we try to determine the rate of profit quality by studying the status of profit management in distressed financial companies. Here, in this research, 3 models were used to study the profit quality and viability. To estimate the bankrupt companies,
existing research is of applied correlative in view of data collection. Descriptive statistics test such as mean, medium were used here. Also, multi-variable regression was used to test hypotheses. Moreover, F and T tests were used for meaningfulness of coefficients and linear relations; remote tests of Watson, Gelmogroff Esmirnof and normalmetry of dependent variables were also used. The research findings in the first hypothesis upon profit viability model regarding
financial crisis of companies reveal that companies with very low bankruptcy likelihood have more profit quality than the ones with high bankruptcy likelihood. On the other hand, the result of the second hypothesis (the relation between profit quality upon multi variable regression model and companies financial crisis) reveal that companies with very low bankruptcy likelihood have more profit quality than the ones with high bankruptcy likelihood. This is exactly the same with the first hypothesis (profit based on Slone model) again reveal the two previous results (companies with very low bankruptcy likelihood have more profit quality than the ones with high bankruptcy likelihood).