Determinant of Financial Ratio Analysis to Financial Distress

Corporate Financial Distress: An Empirical Analysis of Distress Risk

Sector dominance ratio analysis of financial markets

In this paper we present a newmeasure to investigate the functional structure of financial markets, the Sector Dominance Ratio (SDR). We study the information embedded in raw and partial correlations using random matrix theory (RMT) and examine the evolution of economic sectoral makeup on a yearly and monthly basis for four stock markets, those of the US, UK, Germany and Japan, during the perio...

Predicting Financial Distress in Tehran Stock Exchange

Companies incur significant costs from the financial distress. Predicting financial distress will have an important role in preventing bankruptcy. The aim of the present study is to predict the financial distress costs using the Leland and Toft models, during 1996 and 1998. This study examines data relating to 49 companies listed in the Tehran stock exchange collected over ten years from 2005 t...

Life Insurer Financial Distress, Best's Ratings and Financial Ratios

This study compares the predictive ability of: (1) ratings, rating changes and total assets; (2) financial ratios; and (3) financial ratios combined with ratings and rating changes on a sample of forty-eight insolvent life insurers over the period 1990 to 1992. Based on the expected cost of misclassification, ratings, rating changes and total assets have comparable predictive ability to financi...

Sensitivity Analysis of Banks Efficiency to the Financial Variables

Discriminant analysis is a classification method that can predict the group membership of a newly sampled observation. In discriminant analysis, classification of new observed data has an uncertainty. In this paper, the confidence degree is introduced to determine the confidence of classification of new observed data. Then, a Monte Carlo-based sensitivity analysis is applied to an assessment of...