Of course sir, i know that last term would be zero in case of an unlevered firm which leads to a greater m - score than it would have been for a exactly similar levered firm. This will imply that unlevered firm's earnings quality is inferior to that of the levered counterpart which in essence makesRead more
Of course sir, i know that last term would be zero in case of an unlevered firm which leads to a greater m – score than it would have been for a exactly similar levered firm. This will imply that unlevered firm’s earnings quality is inferior to that of the levered counterpart which in essence makes no sense ( it’s like the model is punishing for not taking up debt ) as both the entities are exactly the same, on the contrary intuitively the unlevered firm has got better earnings quality and in no case avoiding debt financing will lead to deterioration of earnings quality.
Thus, i proposed adjustment to the intercept of the model’s equation while evaluating unlevered firms to avoid getting spurious results.
INTEGRATION OF FSA TECHNIQUES
Thanks sir.
Thanks sir.
See lessbeneish model – evaluating quality of financial reports
Of course sir, i know that last term would be zero in case of an unlevered firm which leads to a greater m - score than it would have been for a exactly similar levered firm. This will imply that unlevered firm's earnings quality is inferior to that of the levered counterpart which in essence makesRead more
Of course sir, i know that last term would be zero in case of an unlevered firm which leads to a greater m – score than it would have been for a exactly similar levered firm. This will imply that unlevered firm’s earnings quality is inferior to that of the levered counterpart which in essence makes no sense ( it’s like the model is punishing for not taking up debt ) as both the entities are exactly the same, on the contrary intuitively the unlevered firm has got better earnings quality and in no case avoiding debt financing will lead to deterioration of earnings quality.
See lessThus, i proposed adjustment to the intercept of the model’s equation while evaluating unlevered firms to avoid getting spurious results.
Economic growth and investment decision
thanks
thanks
See less