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The Predictive Ability Of Corporate Financial Disclosures : Australian Evidence, Yun Ren

Theses : Honours

This thesis examines the predictive ability of corporate financial disclosures. Factor Analysis and Discriminant Analysis are used to differentiate between good companies and poor companies in Australian manufacturing industry. Good and poor companies are identified based on their 2009 financial data and the prediction models are constructed based on their 2008 data. 64 companies are selected finally, with 29 good companies and 35 poor companies. Financial ratios, company size, corporate governance and conservatism are employed in this study to examine whether they can predict corporate perforn1ance. Because only 3 7 companies disclosed research and development (R&D) expenses, which are used …