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Journal article
Investor Response to Changes in Corporate Liquidity
Managerial finance, Vol.15(6), pp.33-36
01/01/1989
Abstract
The liquidity component from financial analysis has been found to be an important predictor of a firm's financial well being. Altman's credit worthiness and financial viability system uses, among six other financial measures, the current ratio as a liquidity discriminant variable. The Altman system itself has had considerable success in the prediction of corporate bankruptcy. Altman reported that the system correctly predicted bankruptcy 93% of the time using financial statements one period prior to failure and 87% with financial statements two periods prior. The Value Line Investment Survey also contains a measure of financial strength that incorporates a liquidity measure.
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Details
- Title
- Investor Response to Changes in Corporate Liquidity
- Publication Details
- Managerial finance, Vol.15(6), pp.33-36
- Resource Type
- Journal article
- Publisher
- MCB UP Ltd
- Copyright
- © 1989, MCB UP Limited
- Identifiers
- 99380171577306600
- Academic Unit
- Commerce; Lewis Bear Jr. College of Business
- Language
- English