A Simple Theory of Financial Ratios as Predictors of Failure

نویسنده

  • Jarrod W. Wilcox
چکیده

This paper presents a simple, intuitive theory of business risk. The results are used to explain empirical observations of Beaver on the power of various financial ratios to predict failure of firms, and to hypothesize improved predictive ratios for use in selecting attractive risk situations and in determining appropriate risk premiums.

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تاریخ انتشار 2008