search query: @indexterm BUSINESS RATIOS / total: 167
reference: 25 / 167
Author: | McLeay, S. |
Title: | Boundary conditions for ratios with positively distributed components |
Journal: | Journal of Business Finance and Accounting
1997 : JAN, VOL. 24:1, p. 67-83 |
Index terms: | BUSINESS RATIOS FREQUENCY DISTRIBUTION ASSETS |
Language: | eng |
Abstract: | This paper describes the statistical properties of the ratio of two positively distributed variables where the numerator is a component of the denominator and where, therefore, the ratio has implicit boundaries of 0 and 1. Johnson's bounded distribution is suggested as a model for ratios of this type, and is derived in this paper as a ratio of lognormal varieties. An empirical analysis of bounded financial ratios of UK companies confirms the goodness of fit. |
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