Liquidity ratios and corporate failures

IF 3.1 4区管理学 Q2 BUSINESS, FINANCE

Accounting and Finance Pub Date : 2023-09-13 DOI:10.1111/acfi.13174

Ken Li

引用次数: 0

Abstract

Abstract One of the most widespread claims in financial statement analysis is that liquidity ratios are useful for predicting failures. However, academic research has found surprisingly little empirical support for this claim. Using logistic regression splines, a non‐parametric method, this paper finds that the relation between the current ratio and failures differs significantly depending on the level of the current ratio. At low, but not high levels, the current ratio is significantly negatively related to failure. Incorporating such context provides statistically and economically significant predictive power about failures. These findings help resolve the discrepancy between practitioners and the academic literature.

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流动性比率和公司破产

财务报表分析中最普遍的主张之一是流动性比率对预测失败有用。然而，令人惊讶的是，学术研究发现很少有实证支持这一说法。利用逻辑回归样条(一种非参数方法)，本文发现电流比与故障之间的关系随着电流比的高低而显著不同。在低但不高的水平下，电流比率与故障显著负相关。结合这样的背景，提供了对故障的统计和经济上重要的预测能力。这些发现有助于解决实践者与学术文献之间的差异。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Accounting and Finance BUSINESS, FINANCE-

CiteScore

5.10

自引率

7.70%

发文量

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