Many researchers found that investing in stocks with low/high valuation multiples generates above-average/below-average long-term returns. At the same time the abundant research confirms that corporate sales growth and profitability are strongly mean-reverting, but stock markets seem to neglect...

Because of higher financial and operating risks small firms are considered to carry higher investment risks than larger ones. Plenty of empirical research found that relatively small/large companies are characterized by relatively high/low long-term average returns as well as relatively high/low...

One of the essential elements of company's economic and financial evaluation is ratio analysis. It includes computation and interpretation of multiple bankruptcy risk ratios. When applying accounting ratios in a credit risk evaluation analysts typically either compute and interpret several...

Forecasting corporate bankruptcy constitutes an integral and relevant part of financial statement analysis and business valuation. Typically the evaluation of a risk of financial default is based on some ratios, including company's indebtedness. However, there are various versions of such...

Accounting goodwill arises as a result of business combinations and appears in a consolidated balance sheet of an acquirer. It is an intangible asset which reflects an excess of value of an acquired business as a whole over a summed value of its identifiable net assets. Since 2010 the...

Capital markets appreciate stability and growth. It means that companies which report smooth earnings growth tend to be priced relatively high. In contrast, stocks showing more erratic earnings patterns or reporting declining earnings tend to be valued relatively low. From stock valuation point...

Capital markets appreciate stability. It means that companies reporting smooth earnings patterns tend to be priced relatively high. However, the empirical issue is whether such valuation premiums for earnings smoothness are justified. We examine the relationships between past five-year earnings...

CHAPTER 1 - Primary financial statements -- CHAPTER 2 - Notes to financial statements -- CHAPTER 3 - Financial statement analysis -- CHAPTER 4 – Prospective financial statement analysis and simulations -- CHAPTER 5 – Real-life case study: A flight to a bankruptcy of Norwegian Air Shuttle.

This book offers hands-on statistical tools for business professionals by focusing on the practical application of a single-equation regression. The authors discuss commonly applied econometric procedures, which are useful in building regression models for economic forecasting and supporting...

Chapter 1. Most common distortions in a financial statement analysis caused by objective weaknesses of accounting and analytical methods -- Chapter 2. Other “noise” in a financial statement analysis caused by objective weaknesses of accounting and analytical methods -- Chapter 3. Deliberate...