The usefulness of share prices and inflation for corporate failure prediction
Part of : Σπουδαί : journal of economics and business ; Vol.46, No.3-4, 1996, pages 135-156
Issue:
Pages:
135-156
Author:
Abstract:
The present paper critically appreciates the usefulness of share prices for corporate failure prediction and suggests utilising macro-economic variables such as inflation to improve the predictive ability of existing models. The results indicate that the predictive ability of share price prediction models improves when adjusted for inflation, in addition, an assessment of the usefulness of the model derived through this research when inflation is omitted shows that only 50% of companies can be predicted as likely to fail more than four quarters prior to the actual event.
Subject (LC):
Notes:
Περιέχει πίνακες, διαγράμματα και βιβλιογραφία
