search query: @author Ward, T. / total: 9
reference: 5 / 9
| Author: | Ward, T. |
| Title: | An empirical study of the incremental predictive ability of Beaver's naive operating flow measure using four-state ordinal models of financial distress |
| Journal: | Journal of Business Finance and Accounting
1994 : JUN, VOL. 21:4, p. 547-561 |
| Index terms: | MODELS FINANCE EMPIRICAL RESEARCH |
| Language: | eng |
| Abstract: | The purpose of this paper is to determine why net income income adjusted for depreciation and amortization of (NOF) is a strong predictor of financial distress. This paper develops four-state ordinal financial distress models lagged one, two, and three years before financial distress to test NOF, instead of using dichotomous bankrupt and nonbankrupt models. The results of this paper suggest that NOF is a strong predictor of financial distress because NOF is an alternative measure of economic income. |
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