Effects of Different Definitions of Firm Size on Ranking and Goodness of Fit in Causal Liquidity Model
Firm size generally has been used as a control variable in positive accounting and finance researches. Firm size can be measured by several indicators such as book value of assets, market value of company (or sum of share and total liabilities values), value of sales and number of employees. In this...
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| Format: | Article |
| Language: | fas |
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Shahid Bahonar University of Kerman
2016-09-01
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| Series: | مجله دانش حسابداری |
| Subjects: | |
| Online Access: | https://jak.uk.ac.ir/article_1447_69b3fee37df966fa25809310934c6263.pdf |
| _version_ | 1818836339253051392 |
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| author | Zeinab Nourbakhsh Hosseini Mohammad Javad Saei Mohammad Reza Abbaszadeh |
| author_facet | Zeinab Nourbakhsh Hosseini Mohammad Javad Saei Mohammad Reza Abbaszadeh |
| author_sort | Zeinab Nourbakhsh Hosseini |
| collection | DOAJ |
| description | Firm size generally has been used as a control variable in positive accounting and finance researches. Firm size can be measured by several indicators such as book value of assets, market value of company (or sum of share and total liabilities values), value of sales and number of employees. In this study the effects of using different definitions of firm size on ranking of firms (for an assumed definition of size), and on goodness of fit in the liquidity forecasting model (the ratio of operating cash flows to sales) were inspected, using a sample of 120 manufacturing companies listed in the Tehran Stock Exchange, in the years 2006 to 2012.
The result showed that ranking of the companies with regard to different definitions does not change in response to firm size, significantly. But, in the operational liquidity forecasting model, the definition of firm size in terms of sales value, in both the logarithmic and relative value scales, has the lowest forecasting error. |
| first_indexed | 2024-12-19T03:05:02Z |
| format | Article |
| id | doaj.art-3ba07e198be547cc8383ae8c38718392 |
| institution | Directory Open Access Journal |
| issn | 2008-8914 2476-292X |
| language | fas |
| last_indexed | 2024-12-19T03:05:02Z |
| publishDate | 2016-09-01 |
| publisher | Shahid Bahonar University of Kerman |
| record_format | Article |
| series | مجله دانش حسابداری |
| spelling | doaj.art-3ba07e198be547cc8383ae8c387183922022-12-21T20:38:08ZfasShahid Bahonar University of Kermanمجله دانش حسابداری2008-89142476-292X2016-09-0172512314410.22103/jak.2016.14471447Effects of Different Definitions of Firm Size on Ranking and Goodness of Fit in Causal Liquidity ModelZeinab Nourbakhsh Hosseini0Mohammad Javad Saei1Mohammad Reza Abbaszadeh2دانشجوی کارشناسی ارشد، دانشگاه فردوسی مشهداستادیار حسابداری، دانشگاه فردوسی مشهددانشیار حسابداری، دانشگاه فردوسی مشهدFirm size generally has been used as a control variable in positive accounting and finance researches. Firm size can be measured by several indicators such as book value of assets, market value of company (or sum of share and total liabilities values), value of sales and number of employees. In this study the effects of using different definitions of firm size on ranking of firms (for an assumed definition of size), and on goodness of fit in the liquidity forecasting model (the ratio of operating cash flows to sales) were inspected, using a sample of 120 manufacturing companies listed in the Tehran Stock Exchange, in the years 2006 to 2012. The result showed that ranking of the companies with regard to different definitions does not change in response to firm size, significantly. But, in the operational liquidity forecasting model, the definition of firm size in terms of sales value, in both the logarithmic and relative value scales, has the lowest forecasting error.https://jak.uk.ac.ir/article_1447_69b3fee37df966fa25809310934c6263.pdfliquidityfirm sizeliquidity forecastingcompanies ranking |
| spellingShingle | Zeinab Nourbakhsh Hosseini Mohammad Javad Saei Mohammad Reza Abbaszadeh Effects of Different Definitions of Firm Size on Ranking and Goodness of Fit in Causal Liquidity Model مجله دانش حسابداری liquidity firm size liquidity forecasting companies ranking |
| title | Effects of Different Definitions of Firm Size on Ranking and Goodness of Fit in Causal Liquidity Model |
| title_full | Effects of Different Definitions of Firm Size on Ranking and Goodness of Fit in Causal Liquidity Model |
| title_fullStr | Effects of Different Definitions of Firm Size on Ranking and Goodness of Fit in Causal Liquidity Model |
| title_full_unstemmed | Effects of Different Definitions of Firm Size on Ranking and Goodness of Fit in Causal Liquidity Model |
| title_short | Effects of Different Definitions of Firm Size on Ranking and Goodness of Fit in Causal Liquidity Model |
| title_sort | effects of different definitions of firm size on ranking and goodness of fit in causal liquidity model |
| topic | liquidity firm size liquidity forecasting companies ranking |
| url | https://jak.uk.ac.ir/article_1447_69b3fee37df966fa25809310934c6263.pdf |
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