 Towards a general non-parametric model of corporate performanceA Fernandez-Castro and P Smith Omega, 1994, vol. 22, issue 3, 237-249 Abstract: Many problems arise in applying conventional statistical methods to accounting ratios, often relating to assumptions about the statistical distribution of ratios. This paper presents a non-parametric model of corporate performance which obviates the need for specification of statistical distributions or functional form. Instead it seeks to identify outstanding performance in a number of dimensions, and to measure the performance of less efficient firms in relation to their efficient peers. The method is illustrated with data relating to 27 failed UK companies and their peers. The strengths and weaknesses of the model are discussed, and it is concluded that, although the model is not a panacea for the problems of interpreting corporate performance, it does offer a useful addition to the armoury of the financial statement analyst. In particular, it offers a technology which is intermediate between the crudity of simple ratio analysis and the complexity of regression analysis. Keywords: financial; statements; corporate; performance; efficiency; data; envelopment; analysis; bankruptcy (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jomega:v:22:y:1994:i:3:p:237-249 Ordering information: This journal article can be ordered from Access Statistics for this article Omega is currently edited by B. Lev More articles in Omega from Elsevier |
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