TY  - JOUR
AB  - The liquidity component from financial analysis has been found to be an important predictor of a firm's financial well being. Altman's credit worthiness and financial viability system uses, among six other financial measures, the current ratio as a liquidity discriminant variable. The Altman system itself has had considerable success in the prediction of corporate bankruptcy. Altman reported that the system correctly predicted bankruptcy 93% of the time using financial statements one period prior to failure and 87% with financial statements two periods prior. The Value Line Investment Survey also contains a measure of financial strength that incorporates a liquidity measure.
VL  - 15
IS  - 6
SN  - 0307-4358
DO  - 10.1108/eb013632
UR  - https://doi.org/10.1108/eb013632
AU  - Huth William L
PY  - 1989
Y1  - 1989/01/01
TI  - INVESTOR RESPONSE TO CHANGES IN CORPORATE LIQUIDITY
T2  - Managerial Finance
PB  - MCB UP Ltd
SP  - 33
EP  - 36
Y2  - 2024/04/25
ER  -