Stock return predictability is important to maintain confidence and liquidity in a stock market. The conventional theory on price behaviour, the Efficient Market Hypothesis, posits that not possible. This study considers Adaptive Hypothesis explain of returns Malaysia using financial ratios as predictor variables. gaining prominence behaviour. However, studies have been mixed limited. contribut...

This study determines whether it is possible to distinguish between conventional and Islamic banks in the Gulf Cooperation Council (GCC) region on the basis of financial characteristics alone. Islamic banks operate under different principles, such as risk sharing and the prohibition of interest, yet both types of banks face similar competitive conditions. The combination of effects means it is ...

We use GRASP strategies to solve the problem of selecting financial ratios to model and predict business failure. As a previous step, we use the GRASP procedure to select a subset of financial ratios that are then used to estimate a model of logistic regression to anticipate finanical distress on a sample of Spanish firms. The algorithm we suggest is designed “ad-hoc” for this type of variables...

The present study adds to our understanding and knowledge of financial distress predictions regarding the usefulness of financial ratios in the late stages of the financial distress process. The study contributes to previous research by generating information concerning: (1) the behavior and usefulness of single financial ratios in short-term financial distress prediction when the effect of eac...

Due to their type of mathematical construction, the use standard financial ratios in studies analysing health a group firms leads series statistical problems that can invalidate results obtained. These are originated by asymmetry ratios. The present article justifies new methodology using compositional data (CoDa) analyse statements sector, improving analyses conventional since enables techniqu...