Quality and reflecting of financial position:  an enterprises model through logistic regression and natural logarithm

Enkeleda Lulaj

doi:10.26458/jedep.v10i1.690

Autori

Enkeleda Lulaj Dr Sc for Finance and Accounting

DOI:

https://doi.org/10.26458/jedep.v10i1.690

Cuvinte cheie:

Statements and financial reports, logistic regression, natural logarithm, enterprise size, financial position

Rezumat

The present study entitled "Quality and reflecting of financial position: an enterprises model through logistic regression and natural logarithm", determines the confirmatory effects of PRF analysis, to assess the position or condition of enterprises in the market. The business environment for enterprises shows the diversity of economic activity, but in one form or another they are interconnected, and their main purpose more specifically of the finance and accounting department, is to compile statements and financial reports (PRF) with reliable data where through them the enterprise looks at its financial position and orientation for better decision-making. The data of this research was based on primary and secondary data, such as interviews conducted in 100 enterprises and analysis of published PRFs. To achieve the purpose of the research from the interview and data, three categories of PRFs were used for testing the study hypothesis. Results from data processing in SPSS & R program, through tests and techniques within logistic regression and natural logarithm clearly show that there is an important relationship between the dependent variable and the independent ones and that large enterprises have a better financial position than small enterprises and the bankruptcy of small enterprises is greater

Referințe

. Srinivas Kt. (2012). An analysis of financial statements of Karnataka power corporation limited, Bangalore. International Journal of Engineering and Management Research, Volume-2, Issue-3, Pages: 53-57.

. Doron N & Stephen H. P. (1999). Ratio analysis and equity valuation. University of California, Berkeley, Pg. No 1-98.

. Kennedy & Muller. (1999). Analysis of financial statements. Pg. No 1.3.

. Faisal A & Mutee-Ur-R &Muhammad T. (2012). A comparison of financial performance in the banking sector. Journal of Business Administration and Education, 1-14.

. Elmerraji, J. (2005). Analyze investments quickly with ratios. Pg. No 33-36.

. Wild J. & Hasley. R. (2006). Financial statement analysis. 9 Edition, Pg. No 2-90.

. Pandey, M. (2012). A management guide for managing company's fund and profits. 6 Edition, Pg. No 1-58.

. Ward, S. (2006). Financial ratio analysis for performance. 6 Edition, Pg. No 132.

. Minaxi, R. (2011). Introduction to management accounting. Pg. No 3-88.

. Rriyaaks, (2012). Financial performance analysis. International Journal " Business Performance Management, Volume 5.

. Hand, I. (2005). Who uses prospectus information to gain insight into private firms, emphasizes that he is "“Unaware of any other systematic, large-sample source of financial statement data for pre-Ipo companies.”?

. Beatty & Harris; Mikhail & Beatty. (1998 & 1999). Private firms and financial reporting. United States: Sealy Corp.

. Katz, S. (2008). Earnings quality and ownership structure: The role of private equity sponsors. Massachusetts Avenue: National Bureau of Economic Research, Cambridge, Ma 02138.

. Zambon S & Marzo G & Girella L & Abela M & Albore N. (2020). A literature review on the reporting. Efrag (European Financial Reporting Advisors Group.

. Lev B. (2018). "The deteriorating usefulness of financial report information and how to reserve it". Accounting and Business Research, Volume 48, Pg. No 465-493.

. Wyatt & Abernethy. (2008). " What financial and non-financial information on intangibles is value relevant? A review of the evidence. Accounting and business research, Volume 38, Pg. No 217-256.

. Lev B. (2019). "Ending the accounting for intangibles status quo". European Accounting Review, Volume 28, Pg. No 713-736.

. Harris T & Penman S. (2008). Principles for the application of fair value accounting. Columbia: Columbia Business School Established the Center for Excellence in Accounting and Security (Cease).

. Benston G. (2006). “Fair-value accounting: a cautionary tale from Enron,”. Journal of Accounting and Public Policy, Pg. No 465-484.

. R. Martin & J. Rich & T. Wilks. (2006). “Auditing fair value measurements: A synthesis of relevant research,”. Accounting horizons, Pg. No 287-303.

. M Barth. (1994). " Fair value accounting evidence from investment and the market valuation". The Accounting Review, Pg. No 1-25.

. Agatha E. & Wei M. & Sidney A. (2010). The switch from us gap to Ifrs - implications for analysis involving inventories. Proceedings of the northeast business & economics association, Pg. No P48-54.

. Bryan S & Lilien S. (2013). How fair values and accounting structures Allow triple-counting income: Implications for standard setters, market participants and academics. Journal of Accounting, Auditing and Finance.

. Collins & Pasewark & Riley. (2016). Economics and political implications of international financial reporting. United States: Igi Global.

. Beaver, W. H. (1996). Financial ratios as predictors of failure. Journal of Accounting Research, Pg. No 91.

. Capillo, J., Serer, F., & Frerrer, E. (2010). Analysis descriptive de los process de fracasoempresarial an Microempresas Mediante Técnicas Multivariances. Revista Europea De Dirección Y Economía De La Empresa, Pg. No 174-176.

. Banimahd B. (2013). Auditor-Management Alignment and Audit Opinion. Management Science Letters, Pg. No 1217-1222.

. Stokes D. (1989). Communicating results: The auditor's opinion. Journal the Internal Auditor, Pg. No 15.

. A. Hossari, G., & Rahman, S. (2005). A comprehensive formal ranking of the popularity of financial ratios in multivariate modeling of corporate collapse. Journal of American Academy of Business, Pg. No 321-327.

. Nenide, B., Pricer, R., & Michael, C. (2010). The use of financial ratios for research: Problems associate and recommendations for using large databases. University of Wisconsin-Madison.

. B. Hossari, G. & Rahman, S. (2005). A comprehensive formal ranking of the popularity of financial ratios in multivariate modeling of corporate collapse. Journal of American Academy of Business, Pg. No 321-327.

. A. Ezzamel M.& Beecher A. (1987). On the distributional properties of financial ratios. Journal of Business Finance & Accounting, Pg. No 463-481.

. B. Ezzamel M.& Beecher A. (1987). On the distributional properties of financial ratios. Journal of Business Finance & Accounting, Pg. No 463-481.

. Beaver W. H. (1968). Market prices, financial rations and the prediction of failure. Journal of Accounting Research, Pg. No 192.

. Altman, E. I. (1968). Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. The Journal of Finance, Xxiii, Pg. No 589.

. Ou, J. A., & Penman, S. H. (1989). Accounting measurement, price-earnings ratio, and the information content of security prices. Journal of Accounting Research, Pg. No 11-136.

. Deakin, E. B. (1976). Distributions of financial accounting ratios: Some empirical evidence. accounting review, Pg. No 90-97.

. Bragg, S. M. (2007). Business ratios and formulas. New Jersey, USA: John.

. Nenide, B., Pricer, R., & Michael, C. (2011). The use of financial ratios for research: Problems associate and recommendations for using large databases. University of Wisconsin-Madison.

. Riordan, D. A., & Riordan, M. P. (2009). Inflation and financial statement analysis in the international accounting classroom. Journal of Teaching in International Business, Pg. No 174-187.

. Dwi Martani, M., & Rahfiani, K. (2009). The effect of financial ratios, firm size, and cashflow from operating activities in the interim report to the stock return. Economic Statistics of Japan. Bank of Japan, Statistics Department, Pg. No 51.

. De Franco, G., Kothari, S. P., & Verdi, R. S. (2011). The benefits of financial statement comparability. Journal of Accounting Research. The Accounting Review, 895–931.

. Gigler, F. & Hemmer, T. (1998). On the frequency, quality, and informational role of mandatory financial reports. Journal of Accounting Research, Pg. No 117-147.

. Monsen, N. & Wallace W.A. (1995). Evolving financial reporting practices: A Comparative Study of The Nordic Countries' Harmonization Efforts. Contemporary Account-Ing Research, Pg. No 973-997.

. Tan, H., Wang, S. & Welker, M. (2011). Analyst following and forecast accuracy after mandated ifrs adoptions. Journal of Accounting Research, Pp.1307-1357.

. De Franco, G. & Wong, M.F. & Zhou, Y. (2011). Accounting adjustments and the valuation of financial statement note information in 10-K filings. The Accounting Review, Pg. No 1577-1604.

. C. De Franco, G., Kothari, S. P., & Verdi, R. S. (2011). The benefits of financial statement comparability. Journal of Accounting Research. The Accounting Review, 895–931.

. A. De Franco, G. & Hope, O.K. & Larocque, S. (2015). Analysts’ choice of peer companies. Review of accounting studies. The Accounting Review, Pg. No 82-109.

. B. De Franco, G. & Hope, O.K. & Larocque, S. (2015). Analysts’ choice of peer companies. Review of accounting studies. The Accounting Review, Pg. No 82-109.

. B. Pantić. (2019). Comparability of financial re-ports: A literature review of most recent studies. St. Petersburg State University, Pg. No 1-20.

. Bhojraj, S., & Lee, C. M. C. (2002). Who is my peer? A valuation-based approach to the se- lection of comparable firms. Journal of Accounting Research, 407–39.

. Kim, J.B., Li, L., Lu, L.Y. and Yu, Y. (2016). Financial statement comparability and expected crash risk. Journal of Accounting and Economics.

. Minnis, M. (2011). The value of financial statement verification in debt financing: Evidence from private us firms. Journal of Accounting Research, Pg. No 457-506.

. A. Kim, S. & Kraft, P., & Ryan, S. (2013). Financial statement comparability and cred-it risk. Review of Accounting Studies., 783–823.

. Barth, M., Landsman, W., Lang, M., & Williams, C. (2012). Are Ifrs-based and us gap- based accounting amounts comparable? Journal of Accounting and Economics, 68–93.

. Brochet, F., Jagolinzer, A. D., & Riel, E. (2013). Mandatory Ifrs adoption and financial statement comparability. Contemporary Accounting Research, 373–400.

. Cascino, S. & Gassen, J. (2015). What drives the comparability effect of mandatory Ifrs adoption? Review of Accounting Studies, 242–282.

. Defond, M., Hu, X., Hung, M., & Li, S. (2011). The impact of mandatory Ifrs adoption on foreign mutual fund ownership: The role of comparability. Journal of Accounting and Economics, 240–58.

. Horton, J., Serafeim, G., & Serafeim, I. (2013). Does mandatory Ifrs adoption improve the information environment? Contemporary Accounting Research, Po No 388–423.

. Yip, R. W. Y., & Young, D. (2012). Adoption improve in-formation comparability? The Accounting Review, 1767–89.

. C. De Franco, G., Kothari, S. P., & Verdi, R. S. (2011). The benefits of financial statement comparability. Journal of Accounting Research. The Accounting Review, 895–931.

. Bhojraj, S., & Lee, C. M. C. (2002). Who is my peer? A valuation-based approach to the se-lection of comparable firms. Journal of Accounting Research, 407–39.

. A. Gowsalya R. & Mohammed M. (2017). Financial performance analysis. International Journal for Research Trends and Innovation, Pg. No 93-98.

. Hagel, J. Et Al. (2013). Success or struggle: ROA as a true measure of business performance. Deloitte. Shift Index Series. Deloitte: Deloitte University Press.

. B. Gowsalya R. & Mohammed M. (2017). Financial Performance Analysis. International Journal for Research Trends and Innovation, Pg. No 93-98.

. Avlokulov. A, (2018). Return on assets and financial soundness analysis: Case study of grain industry companies in Uzbekistan. International Journal of Management Science and Business Administration, Pg. No 52-56.

. Lassala, C. & Apatrei, A. & Sapena, J. (2017). Sustainability matter and financial performance of companies. Sustainability Journal, Pg. No 9-1498.

. Mainula F. (2012). Can ROE be used to predict portfolio performance? Economics, Management, and Financial Markets, Pg. No 132-148.

. Venkata S. (2009). Basics of accounting theory. John Wiley & Sons (Asia) Pte. Ltd: Accounting for investments: equities, futures and options.

. Accounting Theory. (N.D.). Accounting Theory. Retrieved from Https://Www.Responsive.Co.Nz/Theory.Html

. Lulaj E, Iseni E. (2018). Role of Analysis CVP (Cost-Volume-Profit) as Important Indicator for Planning and Making. European Journal of Economics, Pg. 99-114.

. Edmister, R. O. (1972). An Empirical Test of Ratio Analysis for Small Business Failure Prediction. Cambridge University Press, 7(2), 1477-1493.

. Tamari, M. (1966). Financial Ratios as a means of forecasting bankruptcy. Management International Review, 6(4), 15-21.

. Meyer, P. A., & Piffer, H. W. (1970). Prediction of Bank Failures. The Journal of Finance, 25, 853-868.

. Mettler, C.A. & Reinhart, R.V. (2016). Advanced and multivariate statistical methods: Practical application and interpretation: Sixth edition. 10.4324/9781315266978.

. Ohlson, J. A. (1980). Financial Ratios and the Probabilistic Prediction of Bankruptcy. Journal of Accounting Research, 18(1), 109-131.

. Ekşi, İ. H. (2011). Classification of Firm Failure with Classification and Regression Trees. International Research Journal of Finance and Economics, 76, 113- 120.

. Ural, K., Gürarda, Ş., & Önemli, M.B. (2015). Lojistik regresyon modeli İle Finansal Başarısızlık Tahminlemesi: Borsa İstanbul’da Faaliyet Gösteren Gıda, İçki Ve Tütün Şirketlerinde Uygulama. Muhasebe ve Finansman Dergisi, 67, 85-100.

. Hameli, K. (2017). Statistical techniques with more variables. Istanbul. Pg.313-346.

. Bulut E. & Şimşek A. (2018). Financial Failure Estimation with Logistic Regression Model: A Study on Technology Sector. Special Issue on International Conference on Empirical Economics and Social Science, Pg. No 178-183.

. Gujarati, D.N. 1995. Basic Econometrics. New York, NY: McGraw-Hills.

. A. Hameli, K. (2017). Statistical techniques with more variables. Istanbul. Pg.313-346.

. Stock, James H. & Watson, Mark W. (2015). Introduction to econometrics. Harvard University, Mark W. Watson, Princeton University.

. B. Hameli, K. (2017). Statistical techniques with more variables. Istanbul. Pg.313-346.

. Sharma, S. (1996). Applied Multivariate Techniques. John Wiley and Sons Inc., New York, 512 p.

. Klein Baum, D.G., Kupper, L.L., Muller, K.E. and Nizam, A. (1998) The Method of Maximum Likelihood. Applied Regression Analysis and Other Multivariable Methods, 3, 639-655. Pacific Grove, Duxbury.

. Reports and financial statements of manufacturing enterprises.

. Reports and financial statements of service enterprises.

. The Business Agency within the Ministry of Trade and Industry.