The Assessment of Company Solvency and Performance using a Statistical Model

Article Abstract:

The methodology used to form the original solvency model in the United Kingdom is analyzed. That model is based on linear discrimination. Its effectiveness is reviewed. Its risk index may well furnish a true assessment of a company's financial difficulties. The z-score transformation is useful for analyzing relative firm performance. This allows for accurate and reliable performance comparisons of cross-sectional and inter- temporal features. Suggestions for use of the model by those employing financial statements are included, as are tables of constituent ratios and graphs of z-score distribution.

United Kingdom, Models, Performance, Accounting and auditing, Corporations, Statistics, Statistics (Data)

---

Should all tax-exempt borrowers with investment-grade quality acquire creditratings?

Article Abstract:

Nonrated bonds are more available in tax-exempt markets than in corporate bond markets. This phenomenon is quite puzzling to some observers because bond ratings should be more valuable to municipal borrowers in the light of evidenceshowing that information assymetry is reduced through bond ratings. However, results of a study on the importance attached to bond ratings by investment-grade quality borrowers indicate that borrowers are able to differentiate between different grades of quality issues even without bond ratings.

Evaluation, Corporate bonds, Tax-exempt securities

---

LDC credit-risk forecasting and banker judgement

Article Abstract:

Research is presented concerning the use of 'Institutional Investor' credit ratings as indicators of banker judgement in the case of less-developed countries. The linear econometric model of the rating is discussed.

International Affairs, Intnl Banking Agencies, Banking industry, Usage, External debts, Linear models (Statistics), Institutional Investor (Periodical)

Similar abstracts:

• Abstracts: Assessment of human muscle strength for engineering purposes: a review of the basics. Modelling handgrip strength in the presence of confounding variables: results from the Allied Dunbar National Fitness Survey
• Abstracts: Employee stock options, equity valuation, and the valuation of option grants using a warrant-pricing model. Accounting information, capital investment decisions, and equity valuation: theory and empirical implications
• Abstracts: A call for papers: ethics and economic behavior in accounting and taxation. Further evidence on the ethics of managing earnings: an examination of the ethically related judgements of shareholders and non-shareholders,
• Abstracts: Purchase, use, and sale of home all can result in tax benefits. An investigation into fraud prevention and detection of small businesses in the United States: responsibilities of auditors, managers, and business owners
• Abstracts: Stress tests of capital requirements. The wealth effects of deregulation of Canadian financial institutions. Dual class firms: capitalization, ownership structure and recapitalization back into single class

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