Business Commons^™

Have Changes In Business Practices And Reporting Standards Changed The Taxonomy Of Financial Ratios?, Thomas Zeller, John Kostolansky, Michail Bozoudis

School of Business: Faculty Publications and Other Works

Prior research established a seven dimension taxonomy of financial ratios. Arguably, advances in business practices, changes in financial reporting standards, and technology have affected the underlying relationships of this taxonomy. This study proposes to identify the extent to which the previously identified relationships have changed, and, if appropriate, to establish an entirely new taxonomy of manufacturing industry financial ratios.

In addition, this study substantially improves and extends prior work in two areas. First, it utilizes advanced statistical methodologies and computing technologies that were unavailable to previous researchers. Second, it investigates not only the current taxonomy of manufacturing industry financial ratios, …