Multivariate distributional properties, outliers, and transformation of financial ratios

Article Abstract:

Accounting studies using financial ratio data typically assume that the ratios display multivariate normal distributions, but previous research on financial ratios' cross-sectional distributions generally has been univariate although the models assume multivariate normality. An examination of multivariate distributional properties, modified power transformations, and multivariate outliers was conducted to approximate the multivariate normality of financial ratios' cross-sectional distributions. The application of power transformation to the financial ratios and the deletion of multivariate outliers resulted in approximate multivariate normality. Research results indicate that power transformation and multivariate outliers can be used for improving statistical conclusion values, thus improving decision models' effectiveness.

Accounting and auditing, Multivariate analysis

---

The achievability of budget targets in profit centers: a field study

Article Abstract:

The choice of annual profit center budget targets among managers of corporations with multiple divisions is examined. Data was collected from 54 profit centers in 12 corporations. Results indicate that budgets are targetted to be met an average of eight or nine years out of ten. The findings go against most management textbooks which suggest that budgets should be targetted to be achieved less than half the time. Self report by managers maintains that highly achievable budgets still provide motivation and challenge.

Program budgeting

---

Similar abstracts:

• Abstracts: Managing a distribution channel under asymmetric information with performance requirements. Integrating distribution strategy and tactics: a model and an application
• Abstracts: Expectation formation and financial ratio adjustment processes. Measurement of financial leverage in the presence of unfunded pension obligations
• Abstracts: The effect of property rights and audit information quality on team incentives for inventory reduction. Analysis of a two-echelon inventory control system with complete redistribution
• Abstracts: The relational view: cooperative strategy and sources of interorganizational competitive advantage. Framing interorganizational network change: A network inertia perspective
• Abstracts: The myth of the corporate political jungle: politicization as a political strategy. Parenthetic learning in organizations: toward the unlearning of the unlearning model

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.