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The Duration of the Adjustment Process of Financial Ratios

✍ Scribed by Yoram C. Peles and Meir I. Schneller


Book ID
121525425
Publisher
MIT Press
Year
1989
Tongue
English
Weight
259 KB
Volume
71
Category
Article
ISSN
0034-6535

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## Abstract In this paper we propose a multivariate extension of the partial adjustment model of financial ratios. To that end, we use a dynamic factor model which assumes that financial ratios measuring, essentially, the same economic–financial dimension of the firm evolve in a similar way, reflec