CHAPTER ONEINTRODUCTION1.0 INTRODUCTIONThis chapter explains the study context, background of the companies, problem statement, research objectives, significance of the study, scope of study, operational definition, thesis structure and conclusion.1.1 BACKGROUND OF THE STUDY1.2 BACKGROUND OF COMPANIES1.2.1 COMPANIES PN171.2.1.1 AUTOAIR HOLDINGS BERHADautoair Holdings Berhad was established in 1989 and was headquartered in Kuala Lumpur. The company's main activities concern the production, trade and distribution of parts and accessories for automotive air conditioning. The company is committed to customer satisfaction in product quality, reliability and services.1.2.1.2 BINA GOODYEAR BERHADBina Goodyear Berhad (BGB) was founded in 1983 and has earned a reputation as a solid contractor. It was listed on the main board of Bursa Malaysia and fell under the construction sector. The landmark of government project completed by BGB such as Selangor State Mosque, International Islamic University and various projects in Putrajaya Special Administrative Region.1.2.1.3 ECM LIBRA FINANCIAL GROUP BERHADECM Libra Financial Group Berhad is actually the holding company listed under ECM Gruppo della Lilancia. It starts in 2002 and is known as financial services group. ECM is one of the financial services company which aims to provide flexible and effective solutions to meet the financial and investment objectives of the clients.1.2.1.4 HIGH-5 BERHAD CONGLOMERATEHigh-5 Berhad conglomerate started its business in 1996. The activities the main ones concern the bakery production, sale and distribution of baked products and telecommunications and wholesale trade or logistics of baked ingredients. High-5 Conglomerate is also known as Silver Bird Group...... middle of paper ...... to show the true picture of the structure by ensuring that accounting and financial reports are disclosed in a professional manner. In addition to using financial ratios and Altman's Z-score in predicting companies' financial distress, some researchers also use other methods such as logistic regression. According to Shuk (2005), several previous researchers have used logistic regression in recent studies of financial hardship. Logistic regression is a suitable method when the dependent variables (financial and non-financial distress) and the independent variables are metric variables. This is a combination of multiple regression and discriminative analysis, he added. Furthermore Haat (2006) in his study found that the advantage of using this logistic regression is that it is less biased and more vigorous than multiple discriminate analysis when the prediction of multivariate normality does not match.