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Reducing The Redundancy Of Financial Ratios And Assessing The Stability Of Financial Patterns, Teck K. Hii
Reducing The Redundancy Of Financial Ratios And Assessing The Stability Of Financial Patterns, Teck K. Hii
Theses: Doctorates and Masters
The purpose of this study was to examine the financial patterns of Australian industrial firms along the lines of Pinches et al.’s (1973; 1975) study. The financial ratios used in prior Australian corporate failure studies were used to derive a reduced set of factors that was predictive of corporate failure (e.g., Castagna & Matolesy, 1981: Booth, 1983). These factors were examined for the short – and long-term stability of these factors. The set of firms used was selected from FINSELECT database, which covered the period from 1989 to 1997. A random list of 199 Australian industrial firms that survived between …