A new dynamic geometric approach for empirical analysis of financial ratios and bankruptcy.
This paper presents a complementary technique for the empirical analysis of nancial ratios and bankruptcy risk using nancial ratios. Within this new framework, we propose the use of a new measure of risk, the Dynamic Risk Space (DRS) measure. We provide evidence of the extent to which changes in val...
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| Format: | Article |
| Language: | English English |
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American Institute of Mathematical Sciences
2011
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| Online Access: | http://psasir.upm.edu.my/id/eprint/24233/1/A%20new%20dynamic%20geometric%20approach%20for%20empirical%20analysis%20of%20financial%20ratios%20and%20bankruptcy.pdf |
| _version_ | 1796970519624417280 |
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| author | Bahiraie, Alireza Abdul Karim, Mohd Azhar Ibrahim, Noor Akma |
| author_facet | Bahiraie, Alireza Abdul Karim, Mohd Azhar Ibrahim, Noor Akma |
| author_sort | Bahiraie, Alireza |
| collection | UPM |
| description | This paper presents a complementary technique for the empirical analysis of nancial ratios and bankruptcy risk using nancial ratios. Within this new framework, we propose the use of a new measure of risk, the Dynamic Risk Space (DRS) measure. We provide evidence of the extent to which changes in values for this index are associated with changes in each axis's values and how this may alter our economic interpretation of changes in patterns and directions. In addition, this model tends to be generally useful for predicting nancial distress and bankruptcy. This method would be a general methodological guideline associated with nancial data, solving some methodological problems concerning nancial ratios such as non-proportionality, nonasymmetry and non-scaled. To test the procedure, Multiple Discriminant Analysis (MDA), Logistic Analysis (LA) and Genetic Programming (GP) are employed to compare results by common and modied ratios for bankruptcy prediction. Classication methods outperformed using the DRS approach. |
| first_indexed | 2024-03-06T07:59:15Z |
| format | Article |
| id | upm.eprints-24233 |
| institution | Universiti Putra Malaysia |
| language | English English |
| last_indexed | 2024-03-06T07:59:15Z |
| publishDate | 2011 |
| publisher | American Institute of Mathematical Sciences |
| record_format | dspace |
| spelling | upm.eprints-242332015-08-26T03:33:04Z http://psasir.upm.edu.my/id/eprint/24233/ A new dynamic geometric approach for empirical analysis of financial ratios and bankruptcy. Bahiraie, Alireza Abdul Karim, Mohd Azhar Ibrahim, Noor Akma This paper presents a complementary technique for the empirical analysis of nancial ratios and bankruptcy risk using nancial ratios. Within this new framework, we propose the use of a new measure of risk, the Dynamic Risk Space (DRS) measure. We provide evidence of the extent to which changes in values for this index are associated with changes in each axis's values and how this may alter our economic interpretation of changes in patterns and directions. In addition, this model tends to be generally useful for predicting nancial distress and bankruptcy. This method would be a general methodological guideline associated with nancial data, solving some methodological problems concerning nancial ratios such as non-proportionality, nonasymmetry and non-scaled. To test the procedure, Multiple Discriminant Analysis (MDA), Logistic Analysis (LA) and Genetic Programming (GP) are employed to compare results by common and modied ratios for bankruptcy prediction. Classication methods outperformed using the DRS approach. American Institute of Mathematical Sciences 2011-11 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/24233/1/A%20new%20dynamic%20geometric%20approach%20for%20empirical%20analysis%20of%20financial%20ratios%20and%20bankruptcy.pdf Bahiraie, Alireza and Abdul Karim, Mohd Azhar and Ibrahim, Noor Akma (2011) A new dynamic geometric approach for empirical analysis of financial ratios and bankruptcy. Journal of Industrial and Management Optimization , 7 (4). pp. 947-965. ISSN 1547-5816; ESSN:1553-166X http://aimsciences.org/ 10.3934/jimo.2011.7.947 English |
| spellingShingle | Bahiraie, Alireza Abdul Karim, Mohd Azhar Ibrahim, Noor Akma A new dynamic geometric approach for empirical analysis of financial ratios and bankruptcy. |
| title | A new dynamic geometric approach for empirical analysis of financial ratios and bankruptcy. |
| title_full | A new dynamic geometric approach for empirical analysis of financial ratios and bankruptcy. |
| title_fullStr | A new dynamic geometric approach for empirical analysis of financial ratios and bankruptcy. |
| title_full_unstemmed | A new dynamic geometric approach for empirical analysis of financial ratios and bankruptcy. |
| title_short | A new dynamic geometric approach for empirical analysis of financial ratios and bankruptcy. |
| title_sort | new dynamic geometric approach for empirical analysis of financial ratios and bankruptcy |
| url | http://psasir.upm.edu.my/id/eprint/24233/1/A%20new%20dynamic%20geometric%20approach%20for%20empirical%20analysis%20of%20financial%20ratios%20and%20bankruptcy.pdf |
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