Designing a Model of Intangible Causes of Bankruptcy by TISM

Document Type : Original Article

Authors

Department of Accounting, Mobarakeh Branch, Islamic Azad University, Isfahan, Iran

Abstract

One of the competitive conflicts of the capital market is the structural disruption of companies in terms of company capacity with market changes that can lead to the bankruptcy of companies. Bankruptcy will usually have detrimental social effects and loss of stakeholder rights due to individual negligence and lack of strategic structural insights at the market level, that knowing that can prevent financial helplessness and bankruptcy and maintain the ground for growth or maintaining the competitive position of the company in the markets as well as the capital market. This study aims to design a model of intangible causes of bankruptcy of capital market companies based on modeling a Total Interpretive Structural Modelling. This research is methodologically based on the result, developmental, and data type is a mixed method. In the qualitative part of the research, through Meta-synthesis and Delphi analysis, an attempt was made to screen the themes of companies' bankruptcy in the capital market and then determine their theoretical adequacy based on Delphi analysis. In the quantitative part of the research, an attempt was made to prioritize the approved themes of the qualitative part while analyzing the total interpretive structural model to determine the most influential theme of the bankruptcy of capital market companies. The target population in this research in the qualitative part included 12 accounting and financial management specialists at the university level and in the quantitative part were 25 managers of the top 50 companies of the stock exchange. The results showed that the lack of strategies to reduce the size of the company based on the product life cycle of products is the most intangible factor in the bankruptcy of capital market companies. This research is limited because it focuses on companies' content and structural dimensions in creating bankruptcy risk. Based on a combination of qualitative and quantitative analysis, he sought to explain the dimensions identified in prioritizing the themes of bankruptcy of capital market companies, an area that, despite its strategic importance and institutional governance in protecting the interests of shareholders, has received less attention. This research can be used to develop theoretical foundations on the one hand and the structural and content relevance of companies on the other to surround the stimulus considered the risks of bankruptcy. The paper shapes the relationship between a firm's situation, its symptoms, the bankruptcy syndrome and the causes of a particular situation. Using one of the newest developed theories, total interpretive structural modelling (TISM) used in firms' diagnosis – the bankruptcy syndrome – the paper extends the characteristics of this term and uses it in determining the causes that generate anomalies at the firm level.

Keywords

Main Subjects

©2023 The author(s). This is an open access article distributed under Creative Commons Attribution 4.0 International License (CC BY 4.0).

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