Investigating Factors Affecting Personal Bankruptcy in Malaysia Through Regression Analysis

Abstract

Investigation on the factors of why people go bankrupt needs to be identified to reduce bankruptcy cases among Malaysians, as the number of bankruptcy cases has significantly increased in Malaysia. This study intended to know the relationship between the unemployment rate, lending rate, non-performing loan, GDP, and household debt toward personal bankruptcy and was investigated using multiple linear regression (MLR) analysis by utilizing the available data from 2005 to 2021 through Malaysia of Department of Insolvency (MDI). The findings suggest that two variables, i.e., the unemployment rate and lending rate, are statistically significant towards personal bankruptcy in Malaysia.