Financial Ratios: A New Geometric Transformation

This paper presents a complementary technique for the empirical analysis of risk and bankruptcy using financial ratios. Within this framework, we propose the use of a new measure of risk, which is Share Risk measure, and provide evidence of the extent to which changes in values of this index are ass...

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Main Authors: Bahiraie, Alireza, Ibrahim, Noor Akma, Mohd, Ismail, Azhar, A. K. M.
Format: Article
Language:English
English
Published: European Journals, Inc. 2008
Online Access:http://psasir.upm.edu.my/id/eprint/7014/1/Financial%20Ratios.pdf
http://psasir.upm.edu.my/id/eprint/7014/
http://www.eurojournals.com/irjfe_20_13.pdf
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Institution: Universiti Putra Malaysia
Language: English
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spelling my.upm.eprints.70142015-09-04T04:08:28Z http://psasir.upm.edu.my/id/eprint/7014/ Financial Ratios: A New Geometric Transformation Bahiraie, Alireza Ibrahim, Noor Akma Mohd, Ismail Azhar, A. K. M. This paper presents a complementary technique for the empirical analysis of risk and bankruptcy using financial ratios. Within this framework, we propose the use of a new measure of risk, which is Share Risk measure, and provide evidence of the extent to which changes in values of this index are associated with changes in each axis values and how this may alter our economic interpretation of changes in the patterns and direction of risk. Solving some methodological problems concerned using financial ratios such as ratio outliers, non-proportionality, non-asymetricity, non-scalicity and non-normal distribution are illustrated. Then results of Multiple Discriminat Analysis (MDA) and Genetic Programming (GP) are compared for common and modified ratios and higher accuracy achieved European Journals, Inc. 2008 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/7014/1/Financial%20Ratios.pdf Bahiraie, Alireza and Ibrahim, Noor Akma and Mohd, Ismail and Azhar, A. K. M. (2008) Financial Ratios: A New Geometric Transformation. International Research Journal of Finance and Economics, 20. pp. 165-171. ISSN 1450-2887 http://www.eurojournals.com/irjfe_20_13.pdf English
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
English
description This paper presents a complementary technique for the empirical analysis of risk and bankruptcy using financial ratios. Within this framework, we propose the use of a new measure of risk, which is Share Risk measure, and provide evidence of the extent to which changes in values of this index are associated with changes in each axis values and how this may alter our economic interpretation of changes in the patterns and direction of risk. Solving some methodological problems concerned using financial ratios such as ratio outliers, non-proportionality, non-asymetricity, non-scalicity and non-normal distribution are illustrated. Then results of Multiple Discriminat Analysis (MDA) and Genetic Programming (GP) are compared for common and modified ratios and higher accuracy achieved
format Article
author Bahiraie, Alireza
Ibrahim, Noor Akma
Mohd, Ismail
Azhar, A. K. M.
spellingShingle Bahiraie, Alireza
Ibrahim, Noor Akma
Mohd, Ismail
Azhar, A. K. M.
Financial Ratios: A New Geometric Transformation
author_facet Bahiraie, Alireza
Ibrahim, Noor Akma
Mohd, Ismail
Azhar, A. K. M.
author_sort Bahiraie, Alireza
title Financial Ratios: A New Geometric Transformation
title_short Financial Ratios: A New Geometric Transformation
title_full Financial Ratios: A New Geometric Transformation
title_fullStr Financial Ratios: A New Geometric Transformation
title_full_unstemmed Financial Ratios: A New Geometric Transformation
title_sort financial ratios: a new geometric transformation
publisher European Journals, Inc.
publishDate 2008
url http://psasir.upm.edu.my/id/eprint/7014/1/Financial%20Ratios.pdf
http://psasir.upm.edu.my/id/eprint/7014/
http://www.eurojournals.com/irjfe_20_13.pdf
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