The UP Cebu School of Management congratulates Engr. Chum Keji A. Ocan on the publication of the article “Financial Distress Levels of Selected Corporations: An Economic Perspective Modelling using Fuzzy Cognitive Map”, co-authored with Evangeline C. Evangelista and Gensbergh G. Rago in Revista Brasileira de Administração Científica.
The study examines the dynamics of financial distress among selected large corporations in Cebu City, Philippines by considering both firm-level and broader economic factors. Using financial data from the Philippine Stock Exchange, the researchers assessed the financial condition of five corporations through Altman Z-scores and examined the relationships among governance, operational, and economic factors using the Analytic Hierarchy Process and Fuzzy Cognitive Mapping.
The findings show that three of the five corporations analyzed were classified in the distress zone, while two were in the grey zone. Scenario analysis further indicated that improvements in operational efficiency and cost structure produced the greatest reduction in financial distress. The study also emphasizes the importance of prudent capital structures and adaptive governance in strengthening short-term financial resilience.
The research provides useful insights into the factors that influence corporate financial stability and highlights the importance of effective operational and financial management in helping firms respond to economic challenges.
This publication reflects the continuing research engagement of the UP Cebu School of Management faculty and its commitment to producing scholarship relevant to business, management, and economic development.
Read the full article here:
[10.6008/CBPC2179-684X.2026.001.0002]
SDG 8: Decent Work and Economic Growth
SDG 9: Industry, Innovation and Infrastructure