The use of financial ratios by analysts to compare the performance of firms from one accounting period to the next is of growing importance with continued European economic integration. Recent studies suggest that the individual component series of financial ratios exhibit nonstationarity which...

Previous studies provide conflicting evidence on the time series properties of company financial ratios, claiming either that the components of ratios exhibit nonstationarity which is not eliminated by the ratio transformation, or that a unit root in the components may be rejected which implies...

In this paper, it is shown how one can employ the wavelet analysis to reconstruct data based only on the subset of information that differentiates the two fundamentally related time series: spot and futures indices. Such an analysis allows researchers to focus on examining the relationship...