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A standard ratio variance methodology for estimating non-American stock prices in global markets is presented.

The accuracy of business forecasting method of competing density is evaluated by using weighted probability ratio testing.

The financial ratio standards of American credit firms are applied to analysis the financial status of Korean households. The results show that Koreans excel over Americans in savings and liquidity, but fare poorly in capital accumulation. The results show that while American financial ratio standards are helpful, new Korean guidelines should be developed.

Byline: Paul Barnes (1,2) Keywords: Mergers; takeovers; acquisitions; prediction Abstract: This paper examines the methodological issues of using accounting ratios to predict takeover targets. Certain improvements are suggested, notably the use of industry-relative ratios and the deterimination of an ex ante cut off point which maximizes returns. The empirical study suggests that industry-relative ratios are not an improvement upon industry-specific models and that, although the models perform better than chance, they do not perform sufficiently well as to earn excess returns. Unfortunately, the results are not sufficiently sensitive as to be significantly affected by the choice of cut off point. Author Affiliation: (1) School of Management and Finance, University of Nottingham, Nottingham, UK, NG7 2RD (2) School of Business, Rutgers University, Camden, NJ, 08102 Article History: Registration Date: 15/10/2004

Byline: A. Rossmann (1), H.-L. Schmidt (1), A. Hermann (2), R. Ristow (2) Keywords: Key wordsa2H-Nuclear magnetic resonance; 13C; 18O-Isotope ratio mass spectrometry; Glycerol; Origin assignment Abstract: aThe adulteration of wine with glycerol is considered to be a problem in European wine-producing countries. The latest control methods are mainly based on the detection of impurities from commercial products, but suffer from the raising efficiency of the purification processes. As there is little chance of being able to identify glycerol from different sources on the basis of a method which uses only one isotope, a multielement approach was tested. Glycerol from wine showed the lowest relative enrichment with D, mainly in position C-2, a relatively high 18.sup.O content, and very negative [delt[a].sup.13]C values, which significantly correlated with those of ethanol from the same wines. The isotopic data of glycerol samples from different sources were in agreement with those given by indices of origin (impurities). These data allowed us to identify the origin of these glycerol samples, i.e. whether they were produced industrially or synthesised by animals or plants. Glycerol of plant origin was most similar to glycerol found in wine. The combination of several isotopic data by discriminance analysis yielded clusters of data obtained from glycerol samples of similar origin. Taking into account the characteristics of possible mixtures, proof that wine has been adulterated depends on the origin and isotope levels of the added compound. This study showed that it is possible to prove that wine has been adulterated with glycerol from other sources when the latter is present at a concentration of 15% of the total glycerol content. Author Affiliation: (1) Lehrstuhl fur Allgemeine Chemie und Biochemie, Technische Universitat Munchen, Vottinger Strasse 40, D-85350 Freising-Weihenstephan, Germany, DE (2) Chemisches Untersuchungsamt Speyer, Nikolaus-von-Weis-Strasse 1, D-67346 Speyer, Germany, DE Article note: Received: 27 October 1997 / Revised version: 12 February 1998

This paper compares data envelopment analysis (DEA) and ratio analysis as alternative tools for assessing the performance of organisational units such as bank branches and schools. Such units typically use one or more resources to secure one or more outputs, the inputs and/or outputs being possibly incommensurate. The assessment of District Health Authorities in England on the provision of perinatal care is used as a vehicle for comparing the two methods. The comparison focuses on how well the two methods agree on the performance of a unit relative to that of other units, and on the estimates of targets each method provides for improving the performance of units. It is found that provided the performance indicators capture all variables used in the DEA assessment the two methods agree reasonably closely on the performance of the units as a whole, though this depends on the way the performance indicators are combined into a summary figure of performance. The two methods can disagree substantially on the relative performance of individual units. Ratio analysis, unlike DEA, is not found to be suitable for setting targets so that units can become more efficient. This is mainly due to the fact that DEA takes simultaneous account of all resources and outputs in assessing performance while ratio analysis relates only one resource to one output at a time. However, the two methods can support each other if used jointly. Ratios do provide useful information on the performance of a unit on specific aspects and they can support the communication of DEA results to non-specialists when the two methods agree on performance. Key words - DEA, performance measurement, efficiency, health service, ratio analysis

Cash flow may be viewed as the lifeblood of a corporation and the essence of its very existence. Numerous empirical studies that use financial and accounting measures to predict business [...]

The functional form of earnings and stock prices on Finnish and US stock markets is investigated via data covering the years 1976-1986. A central idea in this investigation is the E/P ratio which inherently assumes a proportional relationship between earnings and stock prices. Results negate the existence of such a proportional relationship in the two countries. Likewise shown is the principal role played by any deviation from such a proportionality on what is known as the E/P anomaly.

Business failure in the construction industry is an important research issue for forecasting the financial status of a company. The construction industry in the United States has several unique characteristics that sharply distinguish it from other sectors of the economy. These characteristics contribute in many ways to the high rate of business failure in the industry. Analysis of major financial ratios to predict performance of a company is one method of failure analysis. Models developed for the manufacturing industry are not appropriate for the construction industry. This paper presents a quantitative model based on financial ratios to assess the financial performance and grade of a construction company, and its chances of business survival. The following financial ratios are used for developing the model: Current ratio, total liabilities to net worth, total assets to revenues revenues to net working capital, return on total assets, and return on net worth. The model also considers characteristics of various trades in the construction industry and the impact of the company size. The model is developed for the following six groups: general contractors, operative builders, heavy construction, plumbing, heating and air-conditioning, electrical works, and other specialty trades., Theunusually high failure rate of US construction companies indicates a need for an analysis of financial ratios focused on this particular industry. Current ratio, total liabilities to net worth, total assets to revenues, revenues to net working capital, return on total assets and return on net worth are combined into a quantitative model to rate the financial status of a construction company. The resulting financial performance index may be used forgeneral contractors, operative builders, heavy construction, plumbing, heating and electrical works and other construction-related work.

This study demonstrates a method (of combining measures) designed to give a more integrated picture of the activities of a business enterprise. Business ratios were cast into an array of descriptive measures, then used for comparison between 21 simulated (in a computerized business game) and 20 actual U.S. firms. The ratio matrix appeared to facilitate an understanding of the interaction among the descriptive measures and in identifying similarities and differences between the two types of firms by showing a number of relationships on the same display. In using the ratio matrix for analysis, fewer significant relationships were shown to exist within the actual companies than in the simulated firms. This was attributed to the likelihood of less structure in situations confronting real firms when compared to the contrived conditions with which simulated firms were designed. Advantages of the ratio matrix and limitations of its use are discussed.

A study on operational competitiveness rating analysis in determining cost and revenue ratios is discussed.

This article offers insights from a study on how the DuPont financial ratios changed during the first decade of the 21st century. the results provide some initial indicators useful for management's financial benchmarking and some tentative conclusions pertaining to the ratios' usefulness in anticipating future shareholder returns., A popular framework for foundational financial analyses, the DuPont financial ratio model has been called 'a timeless and elegant model of financial analyses.' (1) It also has been called 'a [...]

A simple and more intuitive explanation of the bias of the ratio and the regression estimators of finite population is provided. The finite population is represented by certain regression fits, and the leading term of bias is described in terms of familiar concepts. We show that the asymptotic] bias of the ratio estimator is due to intercept of a linear regression fit, whereas for the regression estimator, it is due to the coefficient of the quadratic term of a quadratic regression fit. We also give some variance formulas written in terms of easily interpretable quantities of the linear regression fit.

Previously published research is examined, and an alternative scoring method for the Motivation Sources Inventory is proposed. The new method, ratio analysis, provides an empirical assessment more consistent with the theoretical framework of the inventory. Theoretical and empirical support for ratio analysis is provided.