Rank transformations and the prediction of corporate failure

Contemporary Accounting Research

Volumn 15, Issue 2, 1998, Pages 145-166

  Kane, Gregory D ^a   Richardson, Frederick M ^b   Meade, Nancy L ^c  

^a UNIVERSITY OF DELAWARE   (United States)

^b VIRGINIA POLYTECHNIC INSTITUTE AND STATE UNIVERSITY   (United States)

^c UNIVERSITY OF LEICESTER   (United Kingdom)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0041592170     PISSN: 08239150     EISSN: None     Source Type: Journal    
DOI: 10.1111/j.1911-3846.1998.tb00553.x     Document Type: Article

References (27)

1. Altman, E. 1968. Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. Journal of Finance 23 (September): 589-609.
2. Beaver, W. 1966. Financial ratios as predictors of failure. Journal of Accounting Research 4 (Supplement ): 71-111.
3. Blum, M. 1974. Failing company discriminant analysis. Journal of Accounting Research 12 (Spring): 1-25.
4. Cheng, C., W. Hopwood, and J. McKeown. 1992. Nonlinearity and specification problems in unexpected earnings response regression model. Accounting Review 67 (July): 579-98.
5. Collins, J., and T. Ruefli. 1992. Strategic risk: an ordinal approach. Management Science 38 (December): 1707-31.
6. ded. New York: John Wiley & Sons, Inc.
7. _., and R. Iman. 1980. The rank transformation as a method of discrimination with some examples. Communications in Statistics: Theory and Methods. 9 (5): 465-87.
8. Deakin, E. 1972. A discriminant analysis of predictors of corporate failure. Journal of Accounting Research 10 (Spring): 167-79.
9. _. 1976. Distributions of financial accounting ratios: Some empirical evidence. Accounting Review 50 (January): 90-6
10. Frecka, T., and W. Hopwood. 1983. The effects of outliers on the cross-sectional distributional properties of accounting ratios. Accounting Review 58 (January): 115-27.
11. Hopwood, W., J. McKeown, and J. Mutchler. 1988. The sensitivity of financial distress prediction models to departures from normality. Contemporary Accounting Research 5 (Fall): 284-98.
12. _. 1994. A reexamination of auditor versus model accuracy within the context of the going-concern opinion decision. Contemporary Accounting Research 10 (Spring): 409-31.
13. Iman, R., and W. Conover. 1979. Use of the rank transform in regression. Technometrics 21 (4): 499-509.
14. Kane, G., and N. Meade. 1997, Rank transformations in cross-sectional comparisons using ratio analysis. Journal of Financial Statement Analysis 2 (Winter): 1-16.
15. _. 1998. Ratio analysis using rank transformation. Review of Quantitative Finance and Accounting 10 (January): 59-74.
16. Kane, G., F. Richardson, and P. Graybeal. 1996. Recession-induced stress and the prediction of corporate failure. Contemporary Accounting Research 13 (Fall): 631-50.
17. Lee, C. 1985. Stochastic properties of cross-sectional financial data. Journal of Accounting Research 23 (Spring ): 213-27.
18. Libby, R. 1975. The use of simulated decision makers in information evaluation. Accounting Review 50 (July): 475-89.
19. Ohlson, J. 1980. Financial ratios and the probabilistic prediction of bankruptcy. Journal of Accounting Research 18 (Spring): 109-31.
20. Palepu, K. 1986. Predicting takeover targets: a methodological and empirical analysis. Journal of Accounting and Economics 8 (March): 3-35.
21. Perry, L., and T. Cronan. 1986. A note on rank transformation discriminant analysis. Journal of Banking and Finance 10 (December): 605-10.
22. Perry, L., T. Cronan, and G. Henderson, Jr. 1985. Industry classification, ordinal data, and bond-rating decision models. Decision Sciences 16 (Winter): 14-24.
23. Richardson, F., and L. Davidson. 1983. An exploration into bankruptcy discriminant model sensitivity. Journal of Business Finance and Accounting 10 (Summer): 195-207.
24. _. 1984. On linear discrimination with accounting ratios. Journal of Business Finance and Accounting 11 (Winter): 511-25.
25. Ruefli, T., and C. Wilson. 1987. Ordinal time series methodology for industry and competitive analysis. Management Science 33 (May): 640-61.
26. So, J. 1994. The distribution of financial ratios - a note. Journal of Accounting, Auditing & Finance 9 (Spring): 215-23.
27. Zavgren, C. 1983. The prediction of corporate failure: The state of the art. Journal of Accounting Literature 2 (Spring): 1-37.