The Characteristics of the Listed Securities under Cash Balance Criteria: A Case Study of Market for Alternative Investment, MAI

Abstract

The objective of this study is to analyze characteristics of the listed securities under cash balance criteria in Market for Alternative Investment (MAI). Data used in this study consists of price to earnings ratio, price to book ratio, earnings per share, market capitalization, current ratio, debt to equity ratio, return on asset, return on equity, net profit margin and corporate governance from the second quarter of 2014 to the second quarter of 2015. The method used in this study is binary logistic regression analysis. The results show that price to earnings ratio, price to book ratio, earnings per share, current ratio, return on asset, net profit margin and corporate governance are statistically significant factors determining the probability of the listed securities being under cash balance criteria in MAI. This study can be beneficial to both investors and policy makers as the early-warning signal for the listed securities being under cash balance criteria.