A quantitative method was used to explore the financial performance of the listed firms on the Kuwait Stock\nExchange. The number of firms explored was 196 out of a possible 206 (two firms are subsidiaries of one of the firm,\nand others are insurance firms excluded). The listed firms were observed from 2009-2014 to understand their status\nin the market, and the direction they are headed towards. The financial data were gathered from the published annual\nreports of the respective firms and the financial statements from the Kuwait Stock Exchange website. The results,\nusing the Altman Z-score model for the period 2009-2014, show that approximately 39.46% of the firms on average\nwere safe; approximately 25.94% of the firms on average were distressed; approximately 15.90% of the firms on\naverage were in a grey area; and approximately 18.71% firms on average had no available data. The bankruptcy rate\ncould not be justified using the Zmijewski score model due to the inconclusive results and the absence of bankruptcy\nlaws in the State of Kuwait. This paper provides insight into the financial distress level in Kuwait. The level of distress\nshows that major changes are necessary within firms and operations are not running smooth. Bankruptcy laws are\nrequired for firms operating in distress. This exploration is a stepping-stone for potential investors by showing the\nmost profitable sectors for investment and for future researchers to predict accurate bankruptcy rates in the State\nof Kuwait.
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