Financial Statement Analysis and the Prediction of Financial Distress

ISBN-13: 9781601984241 / Angielski / Miękka / 2011 / 90 str.

William H. Beaver; Maria Correia; Maureen F. McNichols

Opis

Financial Statement Analysis and the Prediction of Financial Distress discusses the evolution of three main streams within the financial distress prediction literature: the set of dependent and explanatory variables used, the statistical methods of estimation, and the modeling of financial distress. Section 1 discusses concepts of financial distress. Section 2 discusses theories regarding the use of financial ratios as predictors of financial distress. Section 3 contains a brief review of the literature. Section 4 discusses the use of market price-based models of financial distress. Section 5 develops the statistical methods for empirical estimation of the probability of financial distress. Section 6 discusses the major empirical findings with respect to prediction of financial distress. Section 7 briefly summarizes some of the more relevant literature with respect to bond ratings. Section 8 presents some suggestions for future research and Section 9 presents concluding remarks.

Spis treści

Introduction. 1. Concepts of Financial Distress. 2. Theory of the Use of Financial Statement Ratios to Assess Financial Distress. 3. A Brief History of the Literature on Financial Ratios as Predictors of Distress. 4. The Use of Market Value-Based Prediction Models. 5. Modeling the probability of bankruptcy. 6. Key Empirical Results for the Prediction of Bankruptcy. 7. Bond Ratings, Financial Ratios and Financial Distress. 8. Suggested Directions for Future Research. 9. Concluding Remarks. References.