Effects of Different Definitions of Firm Size on Ranking and Goodness of Fit in Causal Liquidity Model

Firm size generally has been used as a control variable in positive accounting and finance researches. Firm size can be measured by several indicators such as book value of assets, market value of company (or sum of share and total liabilities values), value of sales and number of employees. In this...

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Autores principales:	Zeinab Nourbakhsh Hosseini, Mohammad Javad Saei, Mohammad Reza Abbaszadeh
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2016
Materias:	liquidity firm size liquidity forecasting companies ranking Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/3ba07e198be547cc8383ae8c38718392
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spelling	oai:doaj.org-article:3ba07e198be547cc8383ae8c387183922021-11-04T19:51:07ZEffects of Different Definitions of Firm Size on Ranking and Goodness of Fit in Causal Liquidity Model2008-89142476-292X10.22103/jak.2016.1447https://doaj.org/article/3ba07e198be547cc8383ae8c387183922016-09-01T00:00:00Zhttps://jak.uk.ac.ir/article_1447_69b3fee37df966fa25809310934c6263.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XFirm size generally has been used as a control variable in positive accounting and finance researches. Firm size can be measured by several indicators such as book value of assets, market value of company (or sum of share and total liabilities values), value of sales and number of employees. In this study the effects of using different definitions of firm size on ranking of firms (for an assumed definition of size), and on goodness of fit in the liquidity forecasting model (the ratio of operating cash flows to sales) were inspected, using a sample of 120 manufacturing companies listed in the Tehran Stock Exchange, in the years 2006 to 2012. The result showed that ranking of the companies with regard to different definitions does not change in response to firm size, significantly. But, in the operational liquidity forecasting model, the definition of firm size in terms of sales value, in both the logarithmic and relative value scales, has the lowest forecasting error.Zeinab Nourbakhsh HosseiniMohammad Javad SaeiMohammad Reza AbbaszadehShahid Bahonar University of Kermanarticleliquidityfirm sizeliquidity forecastingcompanies rankingAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 7, Iss 25, Pp 123-144 (2016)
institution	DOAJ
collection	DOAJ
language	FA
topic	liquidity firm size liquidity forecasting companies ranking Accounting. Bookkeeping HF5601-5689
spellingShingle	liquidity firm size liquidity forecasting companies ranking Accounting. Bookkeeping HF5601-5689 Zeinab Nourbakhsh Hosseini Mohammad Javad Saei Mohammad Reza Abbaszadeh Effects of Different Definitions of Firm Size on Ranking and Goodness of Fit in Causal Liquidity Model
description	Firm size generally has been used as a control variable in positive accounting and finance researches. Firm size can be measured by several indicators such as book value of assets, market value of company (or sum of share and total liabilities values), value of sales and number of employees. In this study the effects of using different definitions of firm size on ranking of firms (for an assumed definition of size), and on goodness of fit in the liquidity forecasting model (the ratio of operating cash flows to sales) were inspected, using a sample of 120 manufacturing companies listed in the Tehran Stock Exchange, in the years 2006 to 2012. The result showed that ranking of the companies with regard to different definitions does not change in response to firm size, significantly. But, in the operational liquidity forecasting model, the definition of firm size in terms of sales value, in both the logarithmic and relative value scales, has the lowest forecasting error.
format	article
author	Zeinab Nourbakhsh Hosseini Mohammad Javad Saei Mohammad Reza Abbaszadeh
author_facet	Zeinab Nourbakhsh Hosseini Mohammad Javad Saei Mohammad Reza Abbaszadeh
author_sort	Zeinab Nourbakhsh Hosseini
title	Effects of Different Definitions of Firm Size on Ranking and Goodness of Fit in Causal Liquidity Model
title_short	Effects of Different Definitions of Firm Size on Ranking and Goodness of Fit in Causal Liquidity Model
title_full	Effects of Different Definitions of Firm Size on Ranking and Goodness of Fit in Causal Liquidity Model
title_fullStr	Effects of Different Definitions of Firm Size on Ranking and Goodness of Fit in Causal Liquidity Model
title_full_unstemmed	Effects of Different Definitions of Firm Size on Ranking and Goodness of Fit in Causal Liquidity Model
title_sort	effects of different definitions of firm size on ranking and goodness of fit in causal liquidity model
publisher	Shahid Bahonar University of Kerman
publishDate	2016
url	https://doaj.org/article/3ba07e198be547cc8383ae8c38718392
work_keys_str_mv	AT zeinabnourbakhshhosseini effectsofdifferentdefinitionsoffirmsizeonrankingandgoodnessoffitincausalliquiditymodel AT mohammadjavadsaei effectsofdifferentdefinitionsoffirmsizeonrankingandgoodnessoffitincausalliquiditymodel AT mohammadrezaabbaszadeh effectsofdifferentdefinitionsoffirmsizeonrankingandgoodnessoffitincausalliquiditymodel
_version_	1718444585136422912

Effects of Different Definitions of Firm Size on Ranking and Goodness of Fit in Causal Liquidity Model

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