FRINK Linked Data Fragments server

Matches in SemOpenAlex for { <https://semopenalex.org/work/W185613022> ?p ?o ?g. }

• W185613022 startingPage "75" @default.
• W185613022 abstract "Cash flow may be viewed as the lifeblood of a corporation and the essence of its very existence. Numerous empirical studies that use financial and accounting measures to predict business performance (i.e., success or failure) emphasize the importance of cash flow information in predicting bankrupt and nonbankrupt firms (Bernard and Stober, 1989; Gentry, 1984 and 1985; BarNiv, 1990, Carslaw and Mills, 1991). Most of those studies conclude that the level of cash inflows and outflows from various activities are highly interrelated. A failure of any part of the system to operate may endanger or cause the entire firm to fail (Largay and Stickney, 1980). The primary objective of this study is to assess the usefulness of cash flow disclosures as required by Statement of Financial Accounting Standards No. 95 (SFAS 95) in the prediction of bankruptcy, and whether cash flow data provide a superior prediction of business failure over the models employing conventional accrual accounting data. The business failure prediction criterion was used for two reasons: (1) Business success or failure has been causally linked to the volume of net cash inflow and outflow components from various activities (Gentry, 1985). For example, the inability of a firm to generate enough cash from its operations may force the firm to borrow more money or to dispose of its capital investments to meet its obligations. If this situation persists over an extended period of time, it may lead to an involuntary bankruptcy. (2) This criterion, which is empirically testable, has been successfully used for investigating the usefulness of accounting information in other studies (Altman and Spivack, 1983). A second objective of this study is to present some new financial ratios derived from cash flow data and to highlight their potential use in financial analysis and prediction of business performance. Some of these are new ratios which have not been used in other studies. MOTIVATION The motivation for this study came from two important developments in the business world: (1) the multitude of business failures across all types of business, and (2) the emphasis placed on cash flow information by the Financial Accounting Standards Board in SFAS 95. Could the use of cash flow data help predict business failure and thus help prevent business failure? The link between cash flow data and corporation net worth has been established in earlier research (Rayburn, 1986). However, these studies were done before the issuance of SFAS 95 and used different measures of cash flow from operations. Numerous studies show that financial ratios based on accrual accounting data possess significant ability to predict bankruptcy (Altman and Spivack, 1983; Beaver, 1966, 1968; Libby, 1975; Ohlson, 1980). Most of these studies concluded that companies with weak and unstable financial indicators (ratios) are more likely to fail than those companies with stronger and more stable financial indicators (ratios). However, these models did not emphasize cash flow data. An ideal approach is probably an integrated one, such as the approach suggested in this study. This paper provides evidence on the usefulness of cash flow data in the prediction of business failure and whether the integration of cash flow data with accrual accounting data can provide a superior measure over accrual accounting data alone for predicting bankruptcy. It should be noted that this study does not suggest overlooking these earlier predictive methods, but rather it addresses whether cash flow information can complement the information already provided by accrual accounting data. There are at least four key differences between the prior studies and this study. First, financial ratios based on conventional accrual accounting are modified to include cash flow information. Second, while prior studies use different approaches to measure cash flow from operations, this study bases its measures of cash from operations on those criteria required by SFAS 95. …" @default.
• W185613022 created "2016-06-24" @default.
• W185613022 creator A5015889182 @default.
• W185613022 creator A5071759097 @default.
• W185613022 creator A5077453667 @default.
• W185613022 date "1995-03-22" @default.
• W185613022 modified "2023-09-23" @default.
• W185613022 title "Using Cash Flow Ratios to Predict Business Failures" @default.
• W185613022 cites W1608820846 @default.
• W185613022 cites W2006680549 @default.
• W185613022 cites W2006862483 @default.
• W185613022 cites W2016945822 @default.
• W185613022 cites W2020848494 @default.
• W185613022 cites W2046783094 @default.
• W185613022 cites W2048801439 @default.
• W185613022 cites W2104626092 @default.
• W185613022 cites W2138487075 @default.
• W185613022 cites W2153754975 @default.
• W185613022 cites W2258784370 @default.
• W185613022 cites W3015634246 @default.
• W185613022 cites W3492853 @default.
• W185613022 hasPublicationYear "1995" @default.
• W185613022 type Work @default.
• W185613022 sameAs 185613022 @default.
• W185613022 citedByCount "27" @default.
• W185613022 countsByYear W1856130222012 @default.
• W185613022 countsByYear W1856130222013 @default.
• W185613022 countsByYear W1856130222014 @default.
• W185613022 countsByYear W1856130222015 @default.
• W185613022 countsByYear W1856130222017 @default.
• W185613022 crossrefType "journal-article" @default.
• W185613022 hasAuthorship W185613022A5015889182 @default.
• W185613022 hasAuthorship W185613022A5071759097 @default.
• W185613022 hasAuthorship W185613022A5077453667 @default.
• W185613022 hasConcept C10138342 @default.
• W185613022 hasConcept C112353543 @default.
• W185613022 hasConcept C121955636 @default.
• W185613022 hasConcept C128044525 @default.
• W185613022 hasConcept C144133560 @default.
• W185613022 hasConcept C162118730 @default.
• W185613022 hasConcept C162324750 @default.
• W185613022 hasConcept C163428354 @default.
• W185613022 hasConcept C166819830 @default.
• W185613022 hasConcept C2777388754 @default.
• W185613022 hasConcept C2781317483 @default.
• W185613022 hasConcept C2781426361 @default.
• W185613022 hasConcept C4577558 @default.
• W185613022 hasConcept C504631918 @default.
• W185613022 hasConcept C76087492 @default.
• W185613022 hasConcept C97366136 @default.
• W185613022 hasConceptScore W185613022C10138342 @default.
• W185613022 hasConceptScore W185613022C112353543 @default.
• W185613022 hasConceptScore W185613022C121955636 @default.
• W185613022 hasConceptScore W185613022C128044525 @default.
• W185613022 hasConceptScore W185613022C144133560 @default.
• W185613022 hasConceptScore W185613022C162118730 @default.
• W185613022 hasConceptScore W185613022C162324750 @default.
• W185613022 hasConceptScore W185613022C163428354 @default.
• W185613022 hasConceptScore W185613022C166819830 @default.
• W185613022 hasConceptScore W185613022C2777388754 @default.
• W185613022 hasConceptScore W185613022C2781317483 @default.
• W185613022 hasConceptScore W185613022C2781426361 @default.
• W185613022 hasConceptScore W185613022C4577558 @default.
• W185613022 hasConceptScore W185613022C504631918 @default.
• W185613022 hasConceptScore W185613022C76087492 @default.
• W185613022 hasConceptScore W185613022C97366136 @default.
• W185613022 hasIssue "1" @default.
• W185613022 hasLocation W1856130221 @default.
• W185613022 hasOpenAccess W185613022 @default.
• W185613022 hasPrimaryLocation W1856130221 @default.
• W185613022 hasRelatedWork W134604524 @default.
• W185613022 hasRelatedWork W1965220679 @default.
• W185613022 hasRelatedWork W1994102621 @default.
• W185613022 hasRelatedWork W2005596732 @default.
• W185613022 hasRelatedWork W2020848494 @default.
• W185613022 hasRelatedWork W2035014156 @default.
• W185613022 hasRelatedWork W2040866919 @default.
• W185613022 hasRelatedWork W2048801439 @default.
• W185613022 hasRelatedWork W2049995643 @default.
• W185613022 hasRelatedWork W2066523057 @default.
• W185613022 hasRelatedWork W2074569449 @default.
• W185613022 hasRelatedWork W208314505 @default.
• W185613022 hasRelatedWork W2124532504 @default.
• W185613022 hasRelatedWork W2284781427 @default.
• W185613022 hasRelatedWork W2324154612 @default.
• W185613022 hasRelatedWork W2765180827 @default.
• W185613022 hasRelatedWork W3012564719 @default.
• W185613022 hasRelatedWork W3492853 @default.
• W185613022 hasRelatedWork W36401497 @default.
• W185613022 hasRelatedWork W2186009492 @default.
• W185613022 hasVolume "7" @default.
• W185613022 isParatext "false" @default.
• W185613022 isRetracted "false" @default.
• W185613022 magId "185613022" @default.
• W185613022 workType "article" @default.