Conditional Mean Reversion of Financial Ratios and the Predictability of Returns

2021 ◽  
Author(s):  
Christophe Boucher ◽  
Alexandre Jasinski ◽  
Sessi Tokpavi
2017 ◽  
Vol 5 (2) ◽  
pp. 287-324
Author(s):  
Dewi Laela Hilyatin

Abstract Bankruptcy is a very essential issue that every company should be aware of. Bankruptcy of a company can be minimized by advanced prediction; such as analyzing the financial statements. This study discusses the financial performance of PT Bank Muamalat Indonesia Tbk, which indicates that there is a degression in some number of financial ratios, the closing of offices and firing of employees in 2012-2016, causing he fact that BMI must pay attention and improve its financial performance and anticipate the existence of a bankruptcy in the company. Based on Altman analysis modification for financial performance of PT Bank Muamalat Indonesia Tbk in 2012-2016, it found Z-Score value of 0,825, 0,659, 1,243, 0,982 and 0,892. Based on Z-Score criteria, PT Bank Muamalat Indonesia Tbk is predicted to experience problems in management and financial structure and also in potentially bankruptcy due to Z-Score value <1,1 while the highest Z-Score value is in 2014, which shows the value of Z-Score>1,1 and <2,6, which means the company is in the gray area, meaning the company’s category is not said to be bankrupt and also not healthy. Keywords: Bankruptcy, Altman Modification Method


CFA Digest ◽  
2000 ◽  
Vol 30 (3) ◽  
pp. 56-57
Author(s):  
William H. Sackley
Keyword(s):  

CFA Digest ◽  
2008 ◽  
Vol 38 (4) ◽  
pp. 37-38
Author(s):  
Michael Kobal

2019 ◽  
Vol 32 (2) ◽  
pp. 149-186
Author(s):  
Mhin Kang ◽  
◽  
Joon Chae

2019 ◽  
Vol 5 (1) ◽  
pp. 1-17
Author(s):  
Nuri Maulana Ikhsan ◽  
Yohanes Rully Dermawan

This study aims to determine the effect of financial ratios on stock prices. Financial ratios used in this study is the Current Ratio, Debt to Equity Ratio, Return On Equity, Total Asset Turnover, Earning Per Share, and Price to Book Value. The type of research used is quantitative to observe the effect of financial ratios on stock prices. This study used a purposive sampling method with a total sample of 20 companies registered in the LQ45 index for the period 2013-2017 and fulfilling the research criteria. The statistical method used is multiple linear regression analysis The results of this study indicate that partially, the variable debt to equity ratio, return on equity, total asset turnover, earnings per share, and price to book value have a significant partial effect on stock prices, while the current ratio variable does not have a partial significant effect on stock prices. Simultaneously the current ratio variable, debt to equity ratio, return on equity, total asset turnover, earnings per share, and price to book value have a significant simultaneous effect on stock prices. And the most dominant influential variable is earnings per share. Keywords:  Current Ratio, Debt to Equity Ratio, Return On Equity, Total Asset Turnover, Earning Per Share, Price to Book Value, and Stock Price.  


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