search query: @indexterm BUSINESS FAILURES / total: 193
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| Author: | Houghton, K. A. Woodliff, D. R. |
| Title: | Financial ratios: The prediction of corporate "succes" and failure |
| Journal: | Journal of Business Finance and Accounting
1987 : WINTER, VOL. 14:4, p.537-554 |
| Index terms: | CORPORATE STRATEGY BUSINESS FAILURES |
| Language: | eng |
| Abstract: | For financial ratios to have utility they must have predictive ability /intrinsic worth to discriminate between cases/ and be interpretable by users /human information processors/. The utility of ratios in relation to both corporate failure and success - defined as relative Earnings Per Share - is examined. Discriminant functions derived distinguished between both failure non-failure and high/low success companies significantly better than chance. However subjects could not differentiate amongst the success cases. |
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