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.

Author: William H. Beaver, Maria Correia, Maureen F. McNichols
Binding Type: Paperback
Publisher: Now Publishers
Published: 04/26/2011
Series: Foundations and Trends(r) in Accounting #15
Pages: 90
Weight: 0.3lbs
Size: 9.21h x 6.14w x 0.19d
ISBN: 9781601984241