International Finance and Accounting Handbook

The companies were drawn from the cement, electrical, engineering, glass, paper, and steel industries. The seven ratios in the f ...

nanced by debt were the major causes of Irish failures. Several of the firms contin- ued to pay dividends right up to the year p ...

LOG(Total assets) LOG(Sales/total assets) Retained earnings/total assets Book value of equity/total liabilities The classifica ...

stitution which has developed some expertise in financial analysis and monitoring the operations of companies. In 1985, the gove ...

The authors present three case studies where the PNB-Score was able to correctly predict the outcome in advance. They also note ...

10 • 41 Original Sample Holdout Sample Year Type I Type II Overall Type I Type II Overall Prior Accuracy Accuracy Accuracy Accur ...

10.20 FINLAND (a) Suominen (1988). The author employs a multinomial logit model (MNL) to classify firms into two groups: failing ...

distinct from those failed later. The results suggest that the MNL model is able to classify the firms into the two groups with ...

5.If the debt has special features such as collateral or a bona fide guarantor, the rating is adjusted accordingly. For relative ...

Net worth was calculated in constant terms as the difference between assets and liabilities. Sales were deflated using the whol ...

The classification accuracy in the holdout subsample ranged from 79% to 100%. Fi- nally the accuracy of the model was tested on ...

The standardized discriminant function coefficients and the discriminant function are as shown in Exhibit 10.21. The classificat ...

Altman, E. I. Corporate Financial Distress. New York: John Wiley & Sons, 1993. ––––. “Financial Ratios, Discriminant Analysi ...

prises (Financial Ratios and Forecasting of Small and Medium Size Enterprises). Review Banque, No. 365, 1977. Deakin, E. B. “A D ...

Ta, H. P., and L. H. Seah. “Business Failure Prediction in Singapore.”Studies in Banking & Finance, Vol. 7, 1988, pp. 105–11 ...

11 • 1 CHAPTER 11 INTERNATIONAL DIVERSIFICATION Edwin J. Elton New York University Martin J. Gruber New York University CONTENTS ...

returns in each market. This is the subject of the next section of the chapter. One of the major sources of risk in internationa ...

world portfolio in 2000. Exhibit 11.2 shows similar percentages for the various pub- licly traded bond markets in 1999. In 2000 ...

of the purchaser’s home country. Thus the return on a foreign investment can be quite different than simply the return in the as ...

Simplifying In the example The last term (the cross-product term) will be much smaller than the other two terms, so that return ...