IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Towards a general non-parametric model of corporate performance

Listed author(s):
  • Fernandez-Castro, A
  • Smith, P
Registered author(s):

    Many problems arise in applying conventional statistical methods to accounting ratios, often relating to assumptions about the statistical distribution of ratios. This paper presents a non-parametric model of corporate performance which obviates the need for specification of statistical distributions or functional form. Instead it seeks to identify outstanding performance in a number of dimensions, and to measure the performance of less efficient firms in relation to their efficient peers. The method is illustrated with data relating to 27 failed UK companies and their peers. The strengths and weaknesses of the model are discussed, and it is concluded that, although the model is not a panacea for the problems of interpreting corporate performance, it does offer a useful addition to the armoury of the financial statement analyst. In particular, it offers a technology which is intermediate between the crudity of simple ratio analysis and the complexity of regression analysis.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.sciencedirect.com/science/article/pii/0305-0483(94)90037-X
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Elsevier in its journal Omega.

    Volume (Year): 22 (1994)
    Issue (Month): 3 (May)
    Pages: 237-249

    as
    in new window

    Handle: RePEc:eee:jomega:v:22:y:1994:i:3:p:237-249
    Contact details of provider: Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description

    Order Information: Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
    Web: https://shop.elsevier.com/order?id=375&ref=375_01_ooc_1&version=01

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:22:y:1994:i:3:p:237-249. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.