International Finance and Accounting Handbook

have a substantial number of cross holdings in other firms will often report in- creases or decreases to earnings reflecting the ...

are large and continue year after year, you should wonder about the source of these efficiencies. Do one-time or nonoperating c ...

lowed by small investments in subsequent years. The third is that acquisitions are not classified by accountants as capital expe ...

Note that the normalization did not make much difference in this case because the ac- tual net capital expenditures in 2000 amou ...

9.4 CONCLUSION. The value of a firm is a function of the same inputs—cash flows and discount rates—for an emerging market firm a ...

10 • 1 CHAPTER 10 BUSINESS FAILURE CLASSIFICATION MODELS: AN INTERNATIONAL SURVEY Edward I. Altman New York University Paul Nara ...

10.1 INTRODUCTION. Business failure identification and early warnings of im- pending financial crisis are important not only to ...

in the construction of a failure classification model. In many cases, we can present an in-depth discussion of the models includ ...

try as a “developing” or a “developed” country in this survey is in the context of fail- ure prediction and may deviate somewhat ...

sovereign risk as well as the classical application for individual firms. Indeed, a 1998 World Bank study analyzed Asian countri ...

approach to assess country risk, as opposed to the more traditional “top-down” meas- ures (e.g., macroeconomic variable), was, i ...

this problem but felt it was not serious. While this technique may be superior to the sometimes-advocated technique of utilizing ...

10.3 SWITZERLAND (a) Weibel (1973). While bankruptcy classification and its many implications have interested researchers in Ger ...

considerably larger (44) than Beerman’s, concentrating on small and intermediate- size firms, with average sales of DM 4 million ...

are devised based on non-numerical data and the delphi technique (numerous experts in various areas) is also recommended. Each c ...

Average balance with regard to value dates Most favorable balance for the borrower Most unfavorable balance for the borrower Cr ...

in the nonfailed groups. The investigation was based on 135 bad companies and 25 good companies and consisted of (1) an examinat ...

2.Profitability: (operating income + ordinary depreciation + addition to pension reserves)/total assets 3.Financial Strength: (c ...

used by practitioners in the U.K. investment community, had accuracies of 96%, 70%, 61%, and 35% for the four years prior to fai ...

(e) Other U.K. Studies. Marais (1979), while on a short-term assignment for the In- dustrial Finance Unit of the Bank of England ...