This document discusses using cartoon graphics to improve communication of accounting information. It reviews literature on using schematic faces to represent accounting data visually. The study aims to empirically test whether schematic faces can communicate financial messages more effectively than conventional presentations like financial ratios and statements. Researchers created faces representing companies by mapping key accounting ratios to facial features, based on psychological research about visual perception of faces.
IRJET- An Over View of Qualitative Structural Analysis using Diagrammatic Rea...IRJET Journal
This document discusses diagrammatic reasoning in qualitative structural analysis. It describes how structural engineers use diagrammatic representations to intuitively determine the deflected shape of structures under loads. The researchers built a system called REDRAW that qualitatively solves structural analysis problems using diagrammatic reasoning similar to humans. REDRAW uses both a symbolic representation of engineering knowledge and a diagrammatic representation to manipulate and inspect diagrams, propagating constraints until reaching a stable deflected shape. The document argues that structural analysis provides a realistic domain for studying diagrammatic reasoning, as diagrams in this field represent real-world objects and their interpretation depends on domain knowledge.
Daron Acemoglu presents a document on networks, games over networks, and peer effects. The document discusses how networks can be used to model externalities and peer effects. It presents a model of a game over networks where players' payoffs are determined by their own actions, the actions of their network neighbors, and potential strategic interactions. The best responses in this game are characterized. Under certain conditions, such as the game being a potential game, the game will have a unique Nash equilibrium where each player's action is determined by their position in the network. The document discusses applications of this type of network game model.
FAIRNESS: A CHALLENGE FOR THE DISTRIBUTION OF COOPERATION GAINS IN VALUE CHAINSijmvsc
Most scientific publications on the subject of value chain management only analyze which structures, processes and actions can contribute to the creation of cooperation gains. How the distribution of cooperation gains that were collectively achieved can influence the stability of such a cooperation is often disregarded. The distributive justice or the fair distribution of collectively created cooperation gains is one of the most important ways to secure the stability of networks. This paper therefore presents a proposal for an operationalization of the fairness term from an economic perspective. This proposal is specific to the distribution of cooperation gains in networks of autonomously acting companies and takes a cooperative game theory approach as its basis. With the aid of the τ-value, it is shown how intuitive and vague associations of fairness can be substantiated to give a concrete distribution proposal that can be perceived and communicated as fair by gradually establishing rational or at least plausible assumptions.
This document summarizes an analysis of economic and salary data for Iowa, with a focus on Dubuque. It uses statistical analysis and data visualization tools to:
1) Examine trends in median salaries over time for different occupations and regions in Iowa, finding some occupations and areas have had declining salaries recently.
2) Categorize occupations into professional, manual labor, and personal services to view high-level trends and compare median incomes between categories.
3) Analyze relationships between different parts of the salary distribution to understand how salaries may be changing for high- and low-income workers within occupations.
4) Create interactive visualizations to explore changes in employment levels and salaries for various occupations over multiple
Mobile technology has seen rapid adoption globally over the past decade. Smartphone usage in particular has accelerated, with over half of US mobile users projected to have smartphones by 2015. This shift has transformed consumer behavior and led to new forms of mobile commerce and payments. New York has emerged as a major technology hub, with over 300 digital startups founded in recent years. The city has a growing ecosystem of local and outside venture capital firms investing in mobile and digital companies. Entrepreneurs are advised to have a clear strategic plan, network widely, be realistic about valuation expectations, and choose funding partners carefully.
IRJET- An Over View of Qualitative Structural Analysis using Diagrammatic Rea...IRJET Journal
This document discusses diagrammatic reasoning in qualitative structural analysis. It describes how structural engineers use diagrammatic representations to intuitively determine the deflected shape of structures under loads. The researchers built a system called REDRAW that qualitatively solves structural analysis problems using diagrammatic reasoning similar to humans. REDRAW uses both a symbolic representation of engineering knowledge and a diagrammatic representation to manipulate and inspect diagrams, propagating constraints until reaching a stable deflected shape. The document argues that structural analysis provides a realistic domain for studying diagrammatic reasoning, as diagrams in this field represent real-world objects and their interpretation depends on domain knowledge.
Daron Acemoglu presents a document on networks, games over networks, and peer effects. The document discusses how networks can be used to model externalities and peer effects. It presents a model of a game over networks where players' payoffs are determined by their own actions, the actions of their network neighbors, and potential strategic interactions. The best responses in this game are characterized. Under certain conditions, such as the game being a potential game, the game will have a unique Nash equilibrium where each player's action is determined by their position in the network. The document discusses applications of this type of network game model.
FAIRNESS: A CHALLENGE FOR THE DISTRIBUTION OF COOPERATION GAINS IN VALUE CHAINSijmvsc
Most scientific publications on the subject of value chain management only analyze which structures, processes and actions can contribute to the creation of cooperation gains. How the distribution of cooperation gains that were collectively achieved can influence the stability of such a cooperation is often disregarded. The distributive justice or the fair distribution of collectively created cooperation gains is one of the most important ways to secure the stability of networks. This paper therefore presents a proposal for an operationalization of the fairness term from an economic perspective. This proposal is specific to the distribution of cooperation gains in networks of autonomously acting companies and takes a cooperative game theory approach as its basis. With the aid of the τ-value, it is shown how intuitive and vague associations of fairness can be substantiated to give a concrete distribution proposal that can be perceived and communicated as fair by gradually establishing rational or at least plausible assumptions.
This document summarizes an analysis of economic and salary data for Iowa, with a focus on Dubuque. It uses statistical analysis and data visualization tools to:
1) Examine trends in median salaries over time for different occupations and regions in Iowa, finding some occupations and areas have had declining salaries recently.
2) Categorize occupations into professional, manual labor, and personal services to view high-level trends and compare median incomes between categories.
3) Analyze relationships between different parts of the salary distribution to understand how salaries may be changing for high- and low-income workers within occupations.
4) Create interactive visualizations to explore changes in employment levels and salaries for various occupations over multiple
Mobile technology has seen rapid adoption globally over the past decade. Smartphone usage in particular has accelerated, with over half of US mobile users projected to have smartphones by 2015. This shift has transformed consumer behavior and led to new forms of mobile commerce and payments. New York has emerged as a major technology hub, with over 300 digital startups founded in recent years. The city has a growing ecosystem of local and outside venture capital firms investing in mobile and digital companies. Entrepreneurs are advised to have a clear strategic plan, network widely, be realistic about valuation expectations, and choose funding partners carefully.
Concept mapping, mind mapping and argumentmapping what are .docxpatricke8
Concept mapping, mind mapping and argument
mapping: what are the differences and do they matter?
Martin Davies
Published online: 27 November 2010
� Springer Science+Business Media B.V. 2010
Abstract In recent years, academics and educators have begun to use software map-
ping tools for a number of education-related purposes. Typically, the tools are used to
help impart critical and analytical skills to students, to enable students to see rela-
tionships between concepts, and also as a method of assessment. The common feature
of all these tools is the use of diagrammatic relationships of various kinds in preference
to written or verbal descriptions. Pictures and structured diagrams are thought to be
more comprehensible than just words, and a clearer way to illustrate understanding of
complex topics. Variants of these tools are available under different names: ‘‘concept
mapping’’, ‘‘mind mapping’’ and ‘‘argument mapping’’. Sometimes these terms are used
synonymously. However, as this paper will demonstrate, there are clear differences in
each of these mapping tools. This paper offers an outline of the various types of tool
available and their advantages and disadvantages. It argues that the choice of mapping
tool largely depends on the purpose or aim for which the tool is used and that the tools
may well be converging to offer educators as yet unrealised and potentially comple-
mentary functions.
Keywords Concept mapping � Mind mapping � Computer-aided argument mapping �
Critical thinking � Argument � Inference-making � Knowledge mapping
Introduction
In the past 5–10 years, a variety of software packages have been developed that enable the
visual display of information, concepts and relations between ideas. These mapping tools
take a variety of names including: ‘‘concept mapping’’, ‘‘mind mapping’’ or ‘‘argument
mapping’’. The potential of these tools for educational purposes is only now starting to be
realised.
M. Davies (&)
University of Melbourne, Parkville, VIC, Australia
e-mail: [email protected]
123
High Educ (2011) 62:279–301
DOI 10.1007/s10734-010-9387-6
The idea of displaying complex information visually is, of course, quite old. Flow
charts, for example, were developed in 1972 (Nassi and Shneiderman 1973) pie charts and
other visual formats go back much earlier (Tufte 1983). More recently, visual displays
have been used to simplify complex philosophical issues (Horn 1998). Formal ways of
‘‘mapping’’ complex information—as opposed to the earth’s surface, countries, cities and
other destinations—began at least 30 years ago, and arguably even earlier.
More recently, the use of information and computer technology has enabled information
mapping to be achieved with far greater ease. A plethora of software tools has been
developed to meet various information mapping needs. What do these tools do? What are
their similarities and differences? What are their advantages and disadvantages? How
precisely do t.
Diana C. Sisson and Tara M. Moretensen, Journal of Public Relations Education, Vol. 3, Issue 2, 78-95
Educating students for the social, digital and information world: Teaching public relations infographic design
Abstract
"This study employs an exploratory content analysis of current public relations information graphics to examine variables within two concepts pertaining to public relations: transparency and clarity. These two concepts were chosen because they apply to both traditional public relations practice and are also widely taught amongst contemporary infographics design experts. The subjects of the study are nonprofit organizations’ online informational graphics (N = 376) that have been released on Twitter. Findings suggest that nonprofit organizations are not applying traditional public relations principles to their design of online information graphics, demonstrating difficulty in translating these principles to visual design, a skill that is becoming more important. While the study is not intended to generalize, this snapshot of current practice is used to offer improvements in preparing public relations students for communication with information visualizations. This exploration illuminates the need for public relations education geared toward the social, visual, and data-driven environment. To this end, the study uses these findings to develop an initial set of practices for infographic design that can be implemented into current public relations education."
http://aejmc.us/jpre/2017/12/29/educating-studen…fographic-design/
DALL-E 2 - OpenAI imagery automation first developed by Vishal Coodye in 2021...MITAILibrary
The document provides a review of machine learning interpretability methods. It begins with an introduction to explainable artificial intelligence and a discussion of key concepts like interpretability and explainability. It then presents a taxonomy of interpretability methods that are divided into four main categories: methods for explaining black-box models, creating white-box models, promoting fairness, and analyzing model sensitivity. Specific machine learning interpretability techniques are summarized within each category.
This document discusses a study that uses a mixed logit model to predict firm financial distress. Mixed logit is an advanced discrete choice modeling technique that relaxes assumptions of standard logit models. It allows for observed and unobserved heterogeneity across firms. The study aims to demonstrate the empirical usefulness of mixed logit in financial distress prediction by comparing its performance to standard logit models. Results and out-of-sample forecasts show mixed logit outperforms standard logit models by significant margins in predicting firm financial distress.
This document discusses using interactive maps to enhance human perception in public health. It defines data visualization and interactive maps, and explores their purpose and advantages in public health. The document outlines different types of interactive maps and discusses elements to consider like color, layout, and text. It also analyzes examples of interactive maps and provides best practices for their use in public health. An interactive dashboard with sample maps is presented to demonstrate essential map elements.
The document presents an introduction to the concept of Organic Information Design, which aims to create dynamic visualizations of changing data sources. It discusses how organic systems can provide a framework for visualizing complex and dynamic information. Key points:
- Existing techniques for visualizing data are insufficient for dynamic data sources that are continually changing.
- Organic Information Design draws from properties of decentralized organic systems like growth, adaptation and response to stimuli to create interactive visualizations ("Organic Information Visualizations").
- These visualizations aim to depict qualitative features of large, changing datasets to aid understanding, rather than focus on individual data points.
- Psychological responses to the behavior of the visualizations can provide a way to interpret
The document discusses improving collaboration within and between organizations. It introduces a Collaboration Maturity Model that provides a scale to describe the nature and efficacy of interactions, from "conflicted" to "coordinated" to "collaborative" to "agile." The model considers factors like information distribution, shared awareness and understanding, and decision rights. The document suggests applying the model to better understand collaboration in situations like remote teams, virtual partnerships, and outsourced work.
The growth of rapid financial technology (fintech) is expected to contribute more than 12% of compound annual growth rate (CAGR) to the economy. India is gradually becoming the hub for many prominent fintech startups such as Paytm, Pine Labs, PayU, Razorpay, and others. However, as per the survey by Financial Express, only 27% of Indians are financially literate. This article investigates the factors that influence the millennial generation and their financial literacy and the relationship between their knowledge, their objectives, their outlook, and their behavior toward the use of fintech applications. The questionnaire is used to gather the main data. Chisquared analysis was used to test the hypotheses, and correspondence analysis was used to determine the characteristics of the millennial generation and visually demonstrate the discrepancy.
This document discusses a linguistic study of communication dynamics during service encounters in a hotel conference department. The study analyzed verbal and some non-verbal data from interactions between customers and service providers through audio and video recordings. The researchers developed a qualitative method grounded in communication theory to identify underlying structures in the discourse that portray relationship dynamics. Preliminary findings showed that attention in interactions is influenced by role relationships and that emotionally loaded cues, or "images", likely have an important effect on customer perceptions of the encounter. The goal of the study was to develop a more robust qualitative analysis of customer and provider experiences using real-time, multidimensional data.
The document discusses a linguistic study of communication dynamics during service encounters at a hotel conference department. It aims to analyze the structural dynamics of communication using a multi-dimensional dataset including audio and video recordings of interactions between staff and customers.
The researchers developed a "molecular coding scheme" to classify the function and content of utterances in transcripts of the recordings. They conducted semi-structured interviews with staff and used a constant comparative method to develop categories for the codes.
The coding scheme allowed them to analyze the interplay of utterances and study the cues in one communicator's statements that attracted the other's attention. This provided insights into the underlying structures of communication dynamics and how the service context impacts interaction patterns.
The document describes a linguistic study of communication dynamics during service encounters at a hotel conference department. Researchers recorded 54 hours of audio and video from the help desk to analyze verbal and nonverbal communication patterns. Transcripts were coded using a molecular coding scheme to classify utterances by function and content. Semi-structured interviews with staff provided additional context. The analysis found that communication was influenced by role relationships and social norms of the service activity. Emotionally loaded cues, or "images", attracted more attention than neutral topics and impacted customer perceptions of the encounter. The dual coding scheme allowed researchers to link responses to preceding communications and observe how participants directed their attention.
1. Inferential statistics allows geographers to make generalizations about populations based on samples. It enables them to handle large datasets and determine relationships between variables.
2. Models are simplified representations of reality that can be physical or symbolic. Physical models visually depict systems while symbolic models use mathematical symbols.
3. Models have advantages like enabling experimentation at low cost but also limitations since they are simplifications and may not accurately represent changing realities over time.
This document provides an introduction to data visualization. It discusses the importance of data visualization for clearly communicating complex ideas in reports and statements. The document outlines the data visualization process and different types of data and relationships that can be visualized, including quantitative and qualitative data. It also discusses various formats for visualizing data, with the goal of helping readers understand data visualization and how to create interactive visuals and analyze data.
MGMT 6367Assignment Problems1. A manufacturer purchases 600.docxARIV4
MGMT 6367
Assignment Problems:
1. A manufacturer purchases 6000 cases of a certain component for $100 per case from two suppliers: Supplier A and Supplier B.
Supplier A is currently responsible for 1/2 of the total demand. The two suppliers currently pay $2 per case for transportation and achieve the same average delivery time of 10 days. However, for each day that a supplier can reduce in the average delivery time, the manufacturer is willing to shift 5% of its total purchase to the supplier offering the premium service. A supplier earns a margin of 25% of the selling price on each case before transportation cost kicks in.
a) How much profit does Supplier A make currently? Please provide at least one step of calculation and the correct answer for full credit. (4 points)
b) Suppose Supplier A is willing to reduce its average delivery time by 3 days and the transportation rate increases by $0.5 per case for each dayreduced in the average delivery time. How much profit can Supplier A make by offering the premium transportation service? Assume that Supplier B take no action. Please provide the new sales number, at least one step of calculation, and the correct answer for full credit. (6 points)
2. a) Please cite an example of a company that uses multiple distribution channels to distribute its products and use one or two sentences to support your choice. (4 points)
b) Please cite an example of a company that adopts corporate vertical marketing system in its distribution and use one or two sentences to support your choice. (4 points)
c) Please cite an example of a company that adopts administered vertical marketing system in its distribution and use one or two sentences to support your choice. (4 points)
3. The following table gives the map coordinates and the shipping loads for a set of cities that we wish to connect through a central hub.
City
Map coordinates (X, Y)
Shipping load (in tons)
A
(20, 10)
20
B
(10, 5)
5
C
(15, 15)
10
D
(20, 5)
10
Using the Centroid method, at what map coordinates should the central hub be located? Please provide at least one step of calculation for each of the two coordinates of the centroid for full credit. (8 points)
1
Running head: LITERATURE REVIEW RESOURCES 1
LITERATURE REVIEW RESOURCES 6
Literature Review Resources
D’Ainsley Smith
Grand Canyon University
January 28, 2018
Literature Review Resources
Number
Article Information
Added to RefWorks?
1.
Reference
Damodaran, A. (1996). Corporate finance. Theory and Practice. Wiley.
Y
Permalink
https://www.amazon.co.uk/corporate-finance
Annotation
The research provides an examination of teaching methods using theories and models that assist in analyzing, understanding, and problem solving. Financial discipline is a creative resource, because it is not associated with theory, but based on methods of actual (real), and practical (logical) concepts.
2.
Reference
David, K., Arthur, S. I., & Michael, M. H. (2001). Mul ...
Materiality matrix use and misuse: a new impression management technique ?Francesco Bavagnoli
This document summarizes a research paper that examines how companies use materiality matrices from an impression management perspective. The researchers analyzed 23 sustainability reports from European financial companies. They found that companies often lack disclosure around stakeholder identification and engagement methods. Most companies use colors and sizing to describe issues, but only half measure issue importance numerically. There is a tendency for reported issues to be highly aligned between business relevance and stakeholder relevance, raising potential selection bias concerns. Only 39% of companies explicitly approve their materiality matrix. The researchers believe some impression management techniques may be used but more research is needed.
Merkl-Davies, Doris M. and Brennan, Niamh M. [2007] Discretionary Disclosure ...Prof Niamh M. Brennan
This paper reviews and synthesizes the literature on discretionary narrative disclosures. We explore why, how, and whether preparers of corporate narrative reports use discretionary disclosures in corporate narrative documents and why, how, and whether users react thereto. To facilitate the review, we provide three taxonomies based on: the motivation for discretionary narrative disclosures (opportunistic behavior, i.e. impression management, versus provision of useful incremental information); the research perspective (preparer versus user); and seven discretionary disclosure strategies.
Characteristic of a Quantitative Research PPT.pptxJHANMARKLOGENIO1
The document discusses quantitative research, including its definition, characteristics, strengths, and weaknesses. It notes that quantitative research seeks objective and accurate measurement through clearly defined research questions and structured instruments. Data is collected in numerical form from large sample sizes to allow for replication and generalization. Strengths include objectivity and the ability to analyze large amounts of data, while weaknesses include high costs and the inability to explore contextual factors.
Ratio Analysis of Samsung Electronics Co. Ltd.Nikita Jangid
This document provides an overview of ratio analysis and its significance. It begins by defining ratio analysis as the process of determining and interpreting numerical relationships based on financial statements. Ratios are calculated by dividing two relevant figures and can be used to assess various aspects of organizational performance such as profitability, liquidity, efficiency, and financial stability. The document then discusses the objectives and types of ratios, how ratios should be calculated and interpreted, and compares ratios to historical standards, industry benchmarks, and budgets. It emphasizes that ratios must be carefully analyzed in context. Finally, the document outlines the significance of ratio analysis for various stakeholders like management, owners, creditors, employees and governments in evaluating financial health and making informed decisions.
People as prophets liberation theology and accountingaccounting2010
This document discusses liberation theology as a radical perspective to inform accounting. It begins by exploring the notion of sacred vs secular as a dualism that limits theological insights. Liberation theology rejects this dualism and provides an alternative view. The document then discusses how critical accounting has focused on accounting's repressive nature, and how liberation theology can inform an emancipatory accounting project. Finally, it discusses how liberation theology rejects the dualism of sacred vs secular and privileged vs non-privileged, providing a perspective that can critique accounting from the view of the economically marginalized.
Neoliberalism, deregulation and sabannes oxleyaccounting2010
This document discusses how neoliberalism and deregulation led to a failed corporate governance model based on shareholder primacy. It argues that Sarbanes-Oxley did not truly address the systemic problems caused by deregulation and instead legitimized the existing corporate governance framework. The document outlines how neoliberal ideology used different forms of power like agenda-setting and manufactured consent to promote deregulation policies and maintain the status quo despite failures and corporate scandals.
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Concept mapping, mind mapping and argumentmapping what are .docxpatricke8
Concept mapping, mind mapping and argument
mapping: what are the differences and do they matter?
Martin Davies
Published online: 27 November 2010
� Springer Science+Business Media B.V. 2010
Abstract In recent years, academics and educators have begun to use software map-
ping tools for a number of education-related purposes. Typically, the tools are used to
help impart critical and analytical skills to students, to enable students to see rela-
tionships between concepts, and also as a method of assessment. The common feature
of all these tools is the use of diagrammatic relationships of various kinds in preference
to written or verbal descriptions. Pictures and structured diagrams are thought to be
more comprehensible than just words, and a clearer way to illustrate understanding of
complex topics. Variants of these tools are available under different names: ‘‘concept
mapping’’, ‘‘mind mapping’’ and ‘‘argument mapping’’. Sometimes these terms are used
synonymously. However, as this paper will demonstrate, there are clear differences in
each of these mapping tools. This paper offers an outline of the various types of tool
available and their advantages and disadvantages. It argues that the choice of mapping
tool largely depends on the purpose or aim for which the tool is used and that the tools
may well be converging to offer educators as yet unrealised and potentially comple-
mentary functions.
Keywords Concept mapping � Mind mapping � Computer-aided argument mapping �
Critical thinking � Argument � Inference-making � Knowledge mapping
Introduction
In the past 5–10 years, a variety of software packages have been developed that enable the
visual display of information, concepts and relations between ideas. These mapping tools
take a variety of names including: ‘‘concept mapping’’, ‘‘mind mapping’’ or ‘‘argument
mapping’’. The potential of these tools for educational purposes is only now starting to be
realised.
M. Davies (&)
University of Melbourne, Parkville, VIC, Australia
e-mail: [email protected]
123
High Educ (2011) 62:279–301
DOI 10.1007/s10734-010-9387-6
The idea of displaying complex information visually is, of course, quite old. Flow
charts, for example, were developed in 1972 (Nassi and Shneiderman 1973) pie charts and
other visual formats go back much earlier (Tufte 1983). More recently, visual displays
have been used to simplify complex philosophical issues (Horn 1998). Formal ways of
‘‘mapping’’ complex information—as opposed to the earth’s surface, countries, cities and
other destinations—began at least 30 years ago, and arguably even earlier.
More recently, the use of information and computer technology has enabled information
mapping to be achieved with far greater ease. A plethora of software tools has been
developed to meet various information mapping needs. What do these tools do? What are
their similarities and differences? What are their advantages and disadvantages? How
precisely do t.
Diana C. Sisson and Tara M. Moretensen, Journal of Public Relations Education, Vol. 3, Issue 2, 78-95
Educating students for the social, digital and information world: Teaching public relations infographic design
Abstract
"This study employs an exploratory content analysis of current public relations information graphics to examine variables within two concepts pertaining to public relations: transparency and clarity. These two concepts were chosen because they apply to both traditional public relations practice and are also widely taught amongst contemporary infographics design experts. The subjects of the study are nonprofit organizations’ online informational graphics (N = 376) that have been released on Twitter. Findings suggest that nonprofit organizations are not applying traditional public relations principles to their design of online information graphics, demonstrating difficulty in translating these principles to visual design, a skill that is becoming more important. While the study is not intended to generalize, this snapshot of current practice is used to offer improvements in preparing public relations students for communication with information visualizations. This exploration illuminates the need for public relations education geared toward the social, visual, and data-driven environment. To this end, the study uses these findings to develop an initial set of practices for infographic design that can be implemented into current public relations education."
http://aejmc.us/jpre/2017/12/29/educating-studen…fographic-design/
DALL-E 2 - OpenAI imagery automation first developed by Vishal Coodye in 2021...MITAILibrary
The document provides a review of machine learning interpretability methods. It begins with an introduction to explainable artificial intelligence and a discussion of key concepts like interpretability and explainability. It then presents a taxonomy of interpretability methods that are divided into four main categories: methods for explaining black-box models, creating white-box models, promoting fairness, and analyzing model sensitivity. Specific machine learning interpretability techniques are summarized within each category.
This document discusses a study that uses a mixed logit model to predict firm financial distress. Mixed logit is an advanced discrete choice modeling technique that relaxes assumptions of standard logit models. It allows for observed and unobserved heterogeneity across firms. The study aims to demonstrate the empirical usefulness of mixed logit in financial distress prediction by comparing its performance to standard logit models. Results and out-of-sample forecasts show mixed logit outperforms standard logit models by significant margins in predicting firm financial distress.
This document discusses using interactive maps to enhance human perception in public health. It defines data visualization and interactive maps, and explores their purpose and advantages in public health. The document outlines different types of interactive maps and discusses elements to consider like color, layout, and text. It also analyzes examples of interactive maps and provides best practices for their use in public health. An interactive dashboard with sample maps is presented to demonstrate essential map elements.
The document presents an introduction to the concept of Organic Information Design, which aims to create dynamic visualizations of changing data sources. It discusses how organic systems can provide a framework for visualizing complex and dynamic information. Key points:
- Existing techniques for visualizing data are insufficient for dynamic data sources that are continually changing.
- Organic Information Design draws from properties of decentralized organic systems like growth, adaptation and response to stimuli to create interactive visualizations ("Organic Information Visualizations").
- These visualizations aim to depict qualitative features of large, changing datasets to aid understanding, rather than focus on individual data points.
- Psychological responses to the behavior of the visualizations can provide a way to interpret
The document discusses improving collaboration within and between organizations. It introduces a Collaboration Maturity Model that provides a scale to describe the nature and efficacy of interactions, from "conflicted" to "coordinated" to "collaborative" to "agile." The model considers factors like information distribution, shared awareness and understanding, and decision rights. The document suggests applying the model to better understand collaboration in situations like remote teams, virtual partnerships, and outsourced work.
The growth of rapid financial technology (fintech) is expected to contribute more than 12% of compound annual growth rate (CAGR) to the economy. India is gradually becoming the hub for many prominent fintech startups such as Paytm, Pine Labs, PayU, Razorpay, and others. However, as per the survey by Financial Express, only 27% of Indians are financially literate. This article investigates the factors that influence the millennial generation and their financial literacy and the relationship between their knowledge, their objectives, their outlook, and their behavior toward the use of fintech applications. The questionnaire is used to gather the main data. Chisquared analysis was used to test the hypotheses, and correspondence analysis was used to determine the characteristics of the millennial generation and visually demonstrate the discrepancy.
This document discusses a linguistic study of communication dynamics during service encounters in a hotel conference department. The study analyzed verbal and some non-verbal data from interactions between customers and service providers through audio and video recordings. The researchers developed a qualitative method grounded in communication theory to identify underlying structures in the discourse that portray relationship dynamics. Preliminary findings showed that attention in interactions is influenced by role relationships and that emotionally loaded cues, or "images", likely have an important effect on customer perceptions of the encounter. The goal of the study was to develop a more robust qualitative analysis of customer and provider experiences using real-time, multidimensional data.
The document discusses a linguistic study of communication dynamics during service encounters at a hotel conference department. It aims to analyze the structural dynamics of communication using a multi-dimensional dataset including audio and video recordings of interactions between staff and customers.
The researchers developed a "molecular coding scheme" to classify the function and content of utterances in transcripts of the recordings. They conducted semi-structured interviews with staff and used a constant comparative method to develop categories for the codes.
The coding scheme allowed them to analyze the interplay of utterances and study the cues in one communicator's statements that attracted the other's attention. This provided insights into the underlying structures of communication dynamics and how the service context impacts interaction patterns.
The document describes a linguistic study of communication dynamics during service encounters at a hotel conference department. Researchers recorded 54 hours of audio and video from the help desk to analyze verbal and nonverbal communication patterns. Transcripts were coded using a molecular coding scheme to classify utterances by function and content. Semi-structured interviews with staff provided additional context. The analysis found that communication was influenced by role relationships and social norms of the service activity. Emotionally loaded cues, or "images", attracted more attention than neutral topics and impacted customer perceptions of the encounter. The dual coding scheme allowed researchers to link responses to preceding communications and observe how participants directed their attention.
1. Inferential statistics allows geographers to make generalizations about populations based on samples. It enables them to handle large datasets and determine relationships between variables.
2. Models are simplified representations of reality that can be physical or symbolic. Physical models visually depict systems while symbolic models use mathematical symbols.
3. Models have advantages like enabling experimentation at low cost but also limitations since they are simplifications and may not accurately represent changing realities over time.
This document provides an introduction to data visualization. It discusses the importance of data visualization for clearly communicating complex ideas in reports and statements. The document outlines the data visualization process and different types of data and relationships that can be visualized, including quantitative and qualitative data. It also discusses various formats for visualizing data, with the goal of helping readers understand data visualization and how to create interactive visuals and analyze data.
MGMT 6367Assignment Problems1. A manufacturer purchases 600.docxARIV4
MGMT 6367
Assignment Problems:
1. A manufacturer purchases 6000 cases of a certain component for $100 per case from two suppliers: Supplier A and Supplier B.
Supplier A is currently responsible for 1/2 of the total demand. The two suppliers currently pay $2 per case for transportation and achieve the same average delivery time of 10 days. However, for each day that a supplier can reduce in the average delivery time, the manufacturer is willing to shift 5% of its total purchase to the supplier offering the premium service. A supplier earns a margin of 25% of the selling price on each case before transportation cost kicks in.
a) How much profit does Supplier A make currently? Please provide at least one step of calculation and the correct answer for full credit. (4 points)
b) Suppose Supplier A is willing to reduce its average delivery time by 3 days and the transportation rate increases by $0.5 per case for each dayreduced in the average delivery time. How much profit can Supplier A make by offering the premium transportation service? Assume that Supplier B take no action. Please provide the new sales number, at least one step of calculation, and the correct answer for full credit. (6 points)
2. a) Please cite an example of a company that uses multiple distribution channels to distribute its products and use one or two sentences to support your choice. (4 points)
b) Please cite an example of a company that adopts corporate vertical marketing system in its distribution and use one or two sentences to support your choice. (4 points)
c) Please cite an example of a company that adopts administered vertical marketing system in its distribution and use one or two sentences to support your choice. (4 points)
3. The following table gives the map coordinates and the shipping loads for a set of cities that we wish to connect through a central hub.
City
Map coordinates (X, Y)
Shipping load (in tons)
A
(20, 10)
20
B
(10, 5)
5
C
(15, 15)
10
D
(20, 5)
10
Using the Centroid method, at what map coordinates should the central hub be located? Please provide at least one step of calculation for each of the two coordinates of the centroid for full credit. (8 points)
1
Running head: LITERATURE REVIEW RESOURCES 1
LITERATURE REVIEW RESOURCES 6
Literature Review Resources
D’Ainsley Smith
Grand Canyon University
January 28, 2018
Literature Review Resources
Number
Article Information
Added to RefWorks?
1.
Reference
Damodaran, A. (1996). Corporate finance. Theory and Practice. Wiley.
Y
Permalink
https://www.amazon.co.uk/corporate-finance
Annotation
The research provides an examination of teaching methods using theories and models that assist in analyzing, understanding, and problem solving. Financial discipline is a creative resource, because it is not associated with theory, but based on methods of actual (real), and practical (logical) concepts.
2.
Reference
David, K., Arthur, S. I., & Michael, M. H. (2001). Mul ...
Materiality matrix use and misuse: a new impression management technique ?Francesco Bavagnoli
This document summarizes a research paper that examines how companies use materiality matrices from an impression management perspective. The researchers analyzed 23 sustainability reports from European financial companies. They found that companies often lack disclosure around stakeholder identification and engagement methods. Most companies use colors and sizing to describe issues, but only half measure issue importance numerically. There is a tendency for reported issues to be highly aligned between business relevance and stakeholder relevance, raising potential selection bias concerns. Only 39% of companies explicitly approve their materiality matrix. The researchers believe some impression management techniques may be used but more research is needed.
Merkl-Davies, Doris M. and Brennan, Niamh M. [2007] Discretionary Disclosure ...Prof Niamh M. Brennan
This paper reviews and synthesizes the literature on discretionary narrative disclosures. We explore why, how, and whether preparers of corporate narrative reports use discretionary disclosures in corporate narrative documents and why, how, and whether users react thereto. To facilitate the review, we provide three taxonomies based on: the motivation for discretionary narrative disclosures (opportunistic behavior, i.e. impression management, versus provision of useful incremental information); the research perspective (preparer versus user); and seven discretionary disclosure strategies.
Characteristic of a Quantitative Research PPT.pptxJHANMARKLOGENIO1
The document discusses quantitative research, including its definition, characteristics, strengths, and weaknesses. It notes that quantitative research seeks objective and accurate measurement through clearly defined research questions and structured instruments. Data is collected in numerical form from large sample sizes to allow for replication and generalization. Strengths include objectivity and the ability to analyze large amounts of data, while weaknesses include high costs and the inability to explore contextual factors.
Ratio Analysis of Samsung Electronics Co. Ltd.Nikita Jangid
This document provides an overview of ratio analysis and its significance. It begins by defining ratio analysis as the process of determining and interpreting numerical relationships based on financial statements. Ratios are calculated by dividing two relevant figures and can be used to assess various aspects of organizational performance such as profitability, liquidity, efficiency, and financial stability. The document then discusses the objectives and types of ratios, how ratios should be calculated and interpreted, and compares ratios to historical standards, industry benchmarks, and budgets. It emphasizes that ratios must be carefully analyzed in context. Finally, the document outlines the significance of ratio analysis for various stakeholders like management, owners, creditors, employees and governments in evaluating financial health and making informed decisions.
Similar to Improving the communication of accounting information throug (20)
People as prophets liberation theology and accountingaccounting2010
This document discusses liberation theology as a radical perspective to inform accounting. It begins by exploring the notion of sacred vs secular as a dualism that limits theological insights. Liberation theology rejects this dualism and provides an alternative view. The document then discusses how critical accounting has focused on accounting's repressive nature, and how liberation theology can inform an emancipatory accounting project. Finally, it discusses how liberation theology rejects the dualism of sacred vs secular and privileged vs non-privileged, providing a perspective that can critique accounting from the view of the economically marginalized.
Neoliberalism, deregulation and sabannes oxleyaccounting2010
This document discusses how neoliberalism and deregulation led to a failed corporate governance model based on shareholder primacy. It argues that Sarbanes-Oxley did not truly address the systemic problems caused by deregulation and instead legitimized the existing corporate governance framework. The document outlines how neoliberal ideology used different forms of power like agenda-setting and manufactured consent to promote deregulation policies and maintain the status quo despite failures and corporate scandals.
International accounting regulation by the united nations a accounting2010
The document discusses international efforts by the United Nations to regulate accounting standards for transnational corporations since the 1970s. It analyzes these efforts through the political power framework of Robert Dahl. A majority of UN member nations sought to impose binding accounting regulations on TNCs via the UN, while a small minority of developed nations resisted increased regulation and supported corporate interests. Despite intensive negotiations over 18 years, the change-seeking nations did not succeed in implementing their reform agenda, with the minority status quo defenders prevailing instead. The document aims to explain this paradox by analyzing the decision-making process and behaviors of participants using Dahl's pluralist power model focused on observable conflicts, behaviors, and outcomes.
Intellectual capital and the capital marketaccounting2010
This document summarizes a paper presented at the 2002 European Accounting Association conference on intellectual capital and the capital market. It discusses two models for conceptualizing intellectual capital - one that divides it into recognized tangible/financial assets, recognized intangible assets, and unrecognized competencies, and another that views intellectual capital as an ongoing process of value creation rather than a set of separable assets. It argues that intellectual capital is difficult for capital markets to understand because intangible assets are not clearly disentangled by existing institutions and frameworks, and have "overflow" that makes their interpretation challenging. Capital markets may appreciate information on soft resources but remain skeptical of specific intellectual capital reports due to limited understanding of knowledge-based value creation.
Factors explaining the innefficient valuation of intangiblesaccounting2010
The document discusses the inefficient valuation of intangible assets in capital markets and the problems that result. It identifies three main causes of inefficient valuation: 1) The quality of financial information provided does not adequately disclose information about intangible assets. 2) Market imperfections like information asymmetry allow insider gains. 3) Financial analysts have limitations that can lead to biases in their earnings forecasts, like cognitive biases, incentives, and time constraints. The document suggests improved disclosure requirements and market regulations could help address these issues.
Economics and accounting a comparison between philosophical accounting2010
This document compares the philosophical backgrounds of economics and accounting in view of complexity theory. It discusses how economics and accounting have related in the past, with accounting traditionally looking to economics for frameworks but not receiving interest in return. It analyzes issues with the theoretical foundations of mainstream neoclassical economics, such as the assumptions of perfect rationality and decreasing returns to scale that do not reflect reality. It argues economics needs to reform its theoretical structure in order to have a more collaborative relationship with accounting and other disciplines by adopting an approach based on bounded rationality and complexity theory.
Current development in human resource costing and accountingaccounting2010
This document summarizes the development of human resource costing and accounting (HRCA) research from the 1960s to the 1990s. It discusses the development in two perspectives: management control and capital market. Regarding management control, HRCA has been used more frequently in Sweden compared to other countries, possibly due to HR directors gaining influence on company boards and HRCA being used as an administrative reform. Regarding capital markets, the value of human resources for knowledge-based companies exceeds book value, yet this is not reflected in financial reporting, hindering investor decisions. Politicians and organizations like OECD are increasingly interested in accounting for "intangibles" like human resources.
This document examines the nature of generally accepted accounting principles (GAAP) from the perspective of philosophy of law. It discusses whether accounting principles should be viewed as norms or social facts, and explores questions about the completeness, consistency, and hierarchical structure of the GAAP. The document argues that viewing accounting principles through a legal positivist lens has inhibited the development of principles that promote fair financial reporting. It aims to clarify the nature of accounting by deriving a rich description of the domain from analyzing these jurisprudential questions.
This document summarizes the state of accounting histories focused on women since 1992. It finds that while feminist history has transformed the wider discipline of history, producing substantial research and impacting modes of explanation, the momentum is less evident in accounting history. The document reviews publications since 1992 and finds that only a small percentage (around 2.5%) focused on women or gender, and few took a explicitly feminist approach. It argues that the field remains mostly in the "recovery" phase of documenting women's histories, and has not engaged sufficiently with developments in feminist historiography that could regenerate the sub-field.
This document discusses methods for making simultaneous inferences about the contrast between two hazard functions using censored data. It presents a generalization of the log-rank test that allows testing hypotheses about the difference in hazard functions at multiple time points simultaneously. The proposed methods are evaluated through simulations and applied to data from an AIDS clinical trial to test if the hazard ratio is constant over time.
This document introduces a new method called maxRatio for analyzing real-time PCR data. MaxRatio generates multiple measurements from the amplification curve, including cycle number (FCN), relative efficiency (MR), and curve shape (width). It identifies a consistent point within the exponential region without user input. Compared to threshold-based methods, maxRatio is more robust to signal anomalies and can better distinguish true amplifications. The document demonstrates maxRatio's application to qualitative and quantitative PCR and its ability to detect anomalous amplification responses.
The time consistency of economic policy and the driving forces behind busines...accounting2010
1. Kydland and Prescott uncovered an inherent problem with discretionary economic policymaking known as the time consistency problem. Without the ability to commit to future policies, governments are unable to implement optimal policies due to rational expectations.
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3. Kydland and Prescott also demonstrated that technology-driven supply shocks can generate realistic business cycles without market failures. This established a new paradigm in macroeconomics based on microeconomic foundations and rational expectations.
This chapter discusses the importance of leaders taking a long-term view of time rather than focusing solely on the present or short-term future. It introduces the concept of "temporal intelligence" and profiles leaders who treat time as a strategic tool rather than something to be managed. The chapter also discusses the "Long Now" movement which aims to promote long-term thinking by creating a clock designed to keep accurate time for 10,000 years.
Moral reasoning and moral atmosphere in the domain of accounaccounting2010
This document discusses Lawrence Kohlberg's framework of moral reasoning and its application to accounting theories and practice. It presents Kohlberg's six stages of moral reasoning organized into three levels - pre-conventional, conventional, and post-conventional. It links these stages to notions of individualism, and discusses how accounting theories and practices reflect assumptions about human behavior that correspond to lower stages of moral reasoning focused on self-interest. The document argues that for accounting to progress, it needs to reflect higher stages of reasoning oriented toward social interests and justice.
A critique of the descriptive power of the private interest accounting2010
This document examines Parker's 1994 private interest model of professional accounting ethics over time in the Irish context from 1994 to 2001. It analyzes media coverage and statements from the Institute of Chartered Accountants in Ireland (ICAI) regarding three events that impacted the ICAI's disciplinary process. It also presents evidence from interviews with past members of the ICAI's disciplinary committees. The analysis finds that Parker's model provides some descriptive power but fails to fully capture the complexity of changes over time to the roles depicted in the model and their interrelationships. The study suggests modifications, particularly to the interrelationships between roles, could improve the model's descriptive ability.
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Working within three dimensions is extremely advantageous from a
communications point of view, but in many practical instances this is rarely
possible if more than a superficial overview is to be conveyed. Many alternative
pictorial methods have been employed in an attempt to facilitate the
communication of information – ranging from the familiar bar and pie charts
and pictograms to more obscure forms. The pie chart, bar chart and trend
graph as detailed by Beattie and Jones (1992), have become familiar and
acceptable in the financial report as alternatives to the narrative and numerical
form; schematic faces have yet to achieve such acceptability, perhaps because of
the novelty of the approach and the emotive manner in which their accounting
message is conveyed.
Alternative methods of presentation, notably those involving the use of a
facial format, may seem a little strange to existing users, but the test of their
usefulness will be in the successful communication of financial messages. While
demanding attention, such figures should also be clear enough to make
interpretation possible without a detailed explanation. The complexity and
familiarity of faces makes them a special class of visual input which derives
from developmental changes in infants, whereby they learn quickly to respond
to more differentiated forms. Schaffer (1971, p. 69), suggests that with
increasing age the overriding importance of the eyes as a source of recognition
and attraction is complemented by increasing attention to other facial features,
facilitating the differentiation between various expressions. The similar
reaction of infants to real faces, photographic representations and schematic
line drawings, forms the basis of their reaction as adults to the messages
provided by cartoon faces. The possibility exists that, with appropriate
assignments, the facial format might be employed to communicate information
on the magnitude and change in a number of variables simultaneously without
the need for detailed explanation or education of users.
There has been limited study to date of the effectiveness of alternative
methods of presenting accounting information for financial decision purposes.
Smith and Taffler (1984) recommend the further exploration of the use of
schematic faces to represent accounting information, following the success of
this medium in displaying multivariate data in other task environments. This
paper explores empirically the usefulness of the schematic face as a
communication device, in a particular decision context, compared with more
conventional presentation formats, focusing on the relative usefulness of
schematic faces, financial ratios and accounting statements as information
formats for decision making.
Literature review
Financial information is both complex and multidimensional and if a complete
picture is to emerge, rather than a series of financial relationships, then
additional graphical methods are required which will represent adequately the
multivariate nature of financial data. Canadian Institute of Chartered
Accountants CICA (1993, p. 122) suggests that the ability of multivariate
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graphics to portray data in an understandable form may result in their
producing better decision making than corresponding tabular presentations.
The impact of graphical representation is an important attribute since a
forceful picture must be produced which allows new stimuli from a complex
data set to be perceived while existing stimuli are being integrated.
Psychologists, among them Yin (1969), Smith and Nielsen (1970), and Reed
(1972), argue that the acquisition and organization of information within
dimensions, by decision makers, is perceived as a Gestalt so that stimuli are
processed in a holistic manner. In addition to providing a Gestalt, the familiarity
of faces commands attention and triggers an emotional reaction which
enhances their overall impact in a way that other forms of graph do not.
Garner (1978), Homa et al. (1976) and Sergent (1984) provide empirical
support for the face being regarded as a spatial interrelationship of features
capable of being perceived as a Gestalt, an issue central to the development of
the schematic face in cognitive research. The familiarity of faces and their ease
of recognition and description makes them superior to other pictorial forms of
representation. Wilkinson (1982) demonstrates that face-based icons
outperform alternative formats in the judgement of similarities. Haig (1984)
demonstrates the incredible sensitivity of respondents to the smallest changes
in facial features. Morton and Johnson (1989) note that faces are special more
than by virtue of their being visible parts of the human form since they can
signal their intentions. This is so even though there is no convincing evidence
that they are processed any differently from other objects among which we
require to discriminate.
Chernoff (1971) initiated the computer-based construction of schematic
“faces” whose features can be made to vary in size and shape according to the
value of the assigned variable[1]. The original form of portrait has been
adapted by Bruckner (1978) to provide greater variation and by Frith in Everitt
(1978) and by Flury and Riedwyl (1981) to provide greater realism. Valentine
(1986) views the human face as a series of vectors in multidimensional space
with dimensions corresponding to significant features. Her study suggests that
a matching of significant features with financial performance measures,
provides the possibility of communicating multidimensional financial
information in a simple, integrated and readily comprehensible form.
Three major contributions to the literature in this area (Moriarity, 1979;
Smith and Taffler, 1984; Stock and Watson, 1984) have applied Chernoff’s
methods in a financial environment: Moriarity (1979), in the seminal study in
the area, working with financial statement data, examines the use of
multidimensional graphics as a technique for describing the financial status of
the firm. His innovative approach provides encouraging results which suggest
that unsupported faces provide an excellent framework for decision making
when produced as an alternative to information conveyed in more traditional
fashion. Moriarity examines the speed and accuracy with which respondents
classify companies as failed or non-failed, without knowledge of prior
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probabilities, when presented with appropriate financial information in
alternative formats.
Moriarity’s respondents found the changes most easily detected in the faces,
which were classified faster and more accurately than either the raw accounting
numbers or derived ratios. His results suggest that our familiarity with faces
makes an interpretation of the portraits possible without a detailed knowledge
of the information used or the facial assignments employed. However,
Moriarity’s sample included only ten respondents of any accounting
sophistication, the remainder being first year accounting undergraduates, so
the strong relative performance with the faces may be attributable to ignorance
of accounting concepts. Moriarity makes no attempt to match the most salient
financial and facial features nor to manipulate eyebrow slant in his schematic
faces, despite the psychological evidence suggesting their importance.
Stock and Watson (1984) take a similar approach but employ judgementally-
determined bond ratings as their classification base in suggesting the potential
usefulness of schematic faces in situations where statistical models are weak.
They demonstrate the relative usefulness of faces but their findings may reflect
the complexity of the task rather than the method of data presentation.
In addition, both of the above studies might be criticized for failing to
compare like with like, so that the superiority of presentation apparent from the
faces may actually represent superiority of information. Schematic faces are
constructed in a relative, not absolute manner, usually standardized relative to
industry means and standard deviations. However, Moriarity provides no
standard deviations for his financial ratios and Stock and Watson provide
neither means nor standard deviations. No attempt is made to compare the
performance of users of varying levels of accounting sophistication.
Smith and Taffler (1984) in a UK environment illustrate how intertemporal
performance comparisons can be made using schematic faces together with
their use in facilitating the distinction between failed and non-failed companies
in large datasets. They suggest that schematic faces may provide a clearer
indication of financial status than is apparent from a company’s financial ratio
profile. However, their study does not show whether accounting data can be
analysed more quickly or more effectively in a facial format than when
represented by more conventional means. None of these studies adequately
reflects contributions from the psychological literature relating to feature
assignment and facial construction. These are addressed below with a
consideration of the features of the face, their interaction, and the use of
caricatures.
Goldstein and Mackenberg (1966), Grant (1970), Laughery et al. (1971) and
De Soete and De Corte (1985) identify three main expressive areas of the face
which link movements with particular emotions: the eyes, the eyebrows and the
mouth. They emphasize the importance of the eye and mouth regions, which are
more mobile than others and communicate more information, and the relative
insignificance of the ears. Notably, Stock and Watson (1984) employ a feature
direction the opposite of that suggested by the psychological literature and
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accord the nose a prominent role in the assignment of financial variables to
facial features, despite the strong psychological evidence to the contrary.
McKelvie (1973) demonstrates that the perceived meaningfulness of the face
is at its greatest when both the eyebrows and mouth curvature vary from an
average position, suggesting that the interaction of eyebrow slant and mouth
curvature provides an effective force in the communication of meaning in facial
expressions. The findings of these studies from the psychological domain are
employed in the facial constructions in this study.
Following Ryan and Schwartz (1956), Chernoff (1978) suggests that
experience with caricatures and cartoons indicates that the need for realistic
faces on pictures is not great. Further supporting evidence is supplied by
Diamond and Carey (1986), who find respondents to prefer schematic cartoon
faces to real faces in recognition exercises, and by Rhodes et al. (1987) who show
that facial caricatures are recognized more quickly than line drawings – results
consistent with a holistic theory of encoding. Benjamin and Pachella (1982)
advise against making Chernoff faces more realistic, since the consequent
introduction of irrelevant information will cause perceptual problems. They
suggest that respondents will be unable to ignore irrelevant features, even when
instructed to do so, so that the number of features presented in the display
should be equal to the number of variables whose values are to be mapped.
The suggestion is that where the facial portrait is required to communicate a
message the emphasis must be placed on the mobile features. These features
can be varied efficiently with the Chernoff (1978) and Bruckner (1978)
formulation to facilitate the interpretation of the overall portrait, so that
financial performance can be represented through appropriate assignment of
financial attributes to facial characteristics. Provided that due attention is paid
to the combination of facial features, without overemphasis on dominant
features, it is possible that an integrative picture might emerge to give a clear
indication of overall performance.
This study overcomes many of the deficiencies of its predecessors and makes
original contributions by incorporating relevant evidence from the
psychological literature, and by extending the experimental work to skilled
users. The complex issue of how financial variables are assigned to facial
characteristics, however, remains an area for further study. No attempt is made
here to vary the feature assignment, rather a single assignment is employed
throughout; the most salient financial variables are assigned to those facial
features deemed by the literature to be the most important, in a manner entirely
consistent with the psychological evidence.
Research method
The task domain is the failed/non-failed company decision situation since there
is a wealth of literature demonstrating the strong degree of environmental
predictability for accounting statement-based ratio information (e.g. Altman,
1968; Taffler, 1982). A substantial literature, summarized by Foster (1986,
p. 534), highlights the prediction of performance on the basis of trends supplied
6. Communication
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by financial ratios and accounting statements. The ease of processing facial
profiles suggests that they might provide a more efficient means of making the
same analysis. This paper suggests that the relative lack of predictability of
information presented in the form of schematic faces in existing studies may be
due to insufficient attention both to the appropriate assignment of variables to
facial components and the relevant psychological literature on feature saliency.
Accounting ratios suggested by Taffler and Sudarsanam (1980) are used to
represent the four key dimensions of accounting information[2]. These ratios
are assigned to facial features in order to provide Chernoff portraits of the type
shown in Figure 1. The aim is to produce faces which reflect the financial
performance of the company and which can be interpreted without the need for
a detailed explanation of the variables employed or the feature assignments.
The schematic Chernoff faces employed here incorporate four variable features:
mouth, eyes, eyebrows and nose. The ears remain constant throughout but the
size and shape of the face may change because of the size and position of the
facial features which it bounds. The precise location of each of the features is
determined by the values of the assigned financial ratios relative to industry
means and standard deviations. Thus, mouth (length, curvature and height)
will be determined by a profit ratio; eye (separation, size and pupil direction)
will be determined by financial gearing; eyebrow (angle and height) will be
determined by liquidity, and nose (length and width) will be determined by
working capital position. Different assignments are possible, but this particular
assignment ensures that three key financial performance measures (profit,
gearing and liquidity) are assigned to the mobile features of the face.
Moriarity (1979), Stock and Watson (1984) and Smith and Taffler (1984) all
use this type of schematic face structure to contrast “healthy” and “distressed”
companies. An impression of a healthy, profitable and secure company is
created by a smiling face and large eyes, while a company in financial distress
has a worried frown, down-turned mouth and small eyes. The overall message
created for the latter would be one of the empty, washed-out face of an
impoverished enterprise.
Figure 1.
A template for failure
classification:
alternative outcomes
from the assignment of
financial variables to
facial characteristics
Distressed Neutral Healthy
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The clarity with which the foregoing figures convey their financial
messages, in the absence of a detailed narrative explanation, provides the
impetus for an analysis of the relative explanatory power of alternative
presentation formats.
The feature assignment illustrates the way in which a visual impression of
the personality of each company can be created which may even allow some
speculation as to its corporateidentity and attributes[3]. The financial ratios are
mapped precisely onto the facial features so that their positions correspond
precisely relative to industry averages.
For each financial ratio calculated, the industry means and standard
deviations corresponding to that time period are used to convert the ratio into a
numerical form expressed as “number of standard deviations above/below the
industry mean”.
For example, suppose that the manufacturing Company XYZ has a
profitability ratio (PBIT/TA) of 0.238, where the industry mean and standard
deviation for that sector in that particular year are respectively 0.07 and 0.12.
Relative to the rest of the sector Company XYZ’s profitability is, therefore, 1.4
standard deviations above the mean
The mean position for the neutral face and the total range of lengths and angles
feasible in the facial caricature allow the development of means and standard
deviations for each facial feature. Financial ratios are mapped onto their
assigned facial characteristic in terms of the number of standard deviations
from the mean so that a precise correspondence of number to position is
achieved. If profitability is mapped onto the mouth, say, then both the length
and curvature of the mouth will be determined by the profit ratio. In the case of
Company XYZ, above, both the length and the curvature will be 1.4 standard
deviations above their mean position, resulting in the display of a modest smile.
Use of industry relatives means that it is possible for an improved financial
ratio in absolute terms to coincide with a deterioration of facial message if the
ratio improvement is lower than that for the industry as a whole. The implicit
use of industry statistics in constructing the facial portrait potentially improves
the processing of financial messages over that with financial ratios, even when
the industry statistics are made available to users.
Consequent on the results of earlier studies, together with the incorporation
of advances in the psychological literature, two issues arise for further
consideration:
(1) facial profiles might be processed significantly more quickly than either
financial ratios or accounting statements;
0 238 0 07
0 12
. – .
.
.
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(2) the classification decisions made using the facial profiles might be more
accurate than those made with either financial ratios or accounting
statements.
Together, these issues prompt a discussion of the resultant improvement in
decision performance from the use of schematic faces, measured in terms of
“efficiency” and “effectiveness”. With respect to the format of presentation, the
most efficient form of presentation is defined by Bertin (1983) as that which
minimizes the effort, measured by time, which is expended to interpret the
relevant aspects of the information set and provide a satisfactory answer to the
given question. Effectiveness is defined by Lusk (1979), in this context, as the
form of presentation which makes it easiest to generate the most accurate
answer to a given set of questions.
An experiment is, therefore, conducted to examine the facility of respondents
of varying accounting sophistication with accounting information presented in
alternative formats. Their processing time and the number of errors of
classification that they make generate measures of the efficiency and
effectiveness of the alternative formats.
Although several previous studies (e.g. De Sanctis, 1984; Remus, 1984) have
compared graphical and tabular data presentation formats, few have used
schematic faces. Mackay and Villarreal (1987) recognize that Chernoff displays
capture multivariate data holistically, in a mnemonic way,unique among
graphical presentations, making comparisons with other presentation forms
potentially difficult. Their study fails to identify any superiority of Chernoff
faces over tabular data in financial decisions, but they do not distinguish
between Type I and Type II errors. Altman et al. (1977) suggest a relative
misclassification cost weighting of 40:1 in favour of Type I errors, relative to
Type II errors, suggesting that a processing format is required which minimizes
opportunities to misclassify failed companies.
While the simplicity of the facial technique is a positive feature in
communicating financial information, especially to the less sophisticated of
users of accounting information, it can be a barrier preventing its widespread
use. It has to be demonstrated that, apart from the novelty of approach, this
method can improve on the quality of decisions made using traditional
methods. To test the hypothesis that facial profiles might provide an efficient
means of representing financial variables, an experiment is devised to test the
reactions of respondents to financial information expressed in alternative
forms:
• accounting statements;
• financial ratios derived from these statements; and
• “faces” constructed by the application of financial ratios to particular
facial features.
The experiment is conducted with three different groups of skilled users and a
group of naïve[4] users to represent users of all levels of sophistication:
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accounting academics from the Universities of Leeds, Lancaster and
Birmingham, accounting practitioners from Big 6 companies and MBA finance
majors from City University, London. Together they provide a sample size of
121 sophisticated users, comprising 52 accounting academics, 23 practitioners
and 46 postgraduate students. The skilled users, though not all practitioners,
employ accounting information and financial statement data regularly, and
have an extensive knowledge of accounting terminology and format.
Comparisons with naïve users, unfamiliar with accounting information, proved
unworkable at the pilot stage of the study causing them to be excluded from the
sample. These relatively unsophisticated users responded well to the schematic
faces but for them the faces were the only accounting medium to convey any
meaning.
A systematic sample of 20 listed UK manufacturing companies is chosen to
provide a majority that are still trading and a minority of failures, together with
examples of companies across the whole range of processing difficulty. A
random sample of a company database is not employed since it would be
unlikely to give many (if any) failures. A 14:6 (i.e. 70 per cent:30 per cent) split
between non-failed and failed companies in the sample is adopted because it
conforms closely with the percentage split at the time between healthy and
distressed companies in the population, based on their computed Z-scores. This
division avoids an even distribution of companies while providing enough
variety in the sample to illustrate the performance range. Companies with
financial year ends between 1974 and 1980 are chosen to reflect the clearly
healthy/clearly failed extremes while including several marginal and
potentially more difficult cases. At no time are the respondents made aware of
the 14:6 division[5]. Accounting statements and financial ratios are prepared
and faces constructed for each of the 20 companies over five-year periods and a
random numbering system used to separate the statements/ratios/faces
information bases.
Respondents are familiarized with the use of schematic faces during a
20-minute briefing session immediately prior to the conduct of the experiment.
The briefing addresses:
• accounting information as a complex multivariate dataset;
• alternative graphical means for displaying data;
• focus on the schematic face and its computer-based construction; and
• advantages and disadvantages for potential applications of such faces in
the financial environment
Prior to the experiment respondents are issued with sample information sheets
to illustrate the manner in which the statements and ratios will be depicted and
with an illustration of the assignment of ratios to features in the facial
representations.
Each respondent is then issued with three separate sets of materials and
asked to make failed/healthy decisions for each of the 20 cases, together with an
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indication of the total time spent in processing the materials. Each set of
materials comprises financial information over a five-year period presented in a
different medium. For failed companies the fifth year is the last prior to failure.
On completion of the first decision task, respondents are asked to repeat the
exercise successively with 20 sets of company financial ratios and schematic
faces respectively. They are informed that the companies are different in each
instance[6].
Processing orders are varied so that all six possible orderings of statements-
ratios-faces, statements-faces-ratios, etc., are employed. Test materials are
ordered randomly for distribution among the three user groups in order to
determine any impact that order of processing might have on the accuracy and
speed of classification. A common single assignment of financial ratios to facial
features is used throughout[7]. On completion of the experiment respondents
are informed of the identity of the companies and their financial status. Mackay
and Villarreal (1987) express concern over individual differences in cue
responsiveness in the use of schematic faces. They note that content validity
might be lowered because of the comic appearance of the faces, and that females
appear to be more responsive to facial displays than males, both factors having
a potential impact on the quality of the resulting decisions. Although desirable,
the testing of gender effects is not possible with this sample. Only three of the
entire sample of 121 are female, all being MBA students. We might speculate
therefore that the subsequent results might even understate the impact of
schematic faces.
Results
Outcomes measuring the “efficiency” and “effectiveness” of the alternative
processing media are detailed in Table I for both the complete sample of 121
respondents and each of the separate user groups. An analysis of these results
highlights two differences, each statistically significant at the 5 per cent level:
(1) The proportion of failed cases misclassified is very much higher than
that of the non-failed cases. This is a potentially important feature of the
Mean percentage of classification errors
Type I Type II Classification time
(Healthy when failed) (Failed when healthy) (Minutes)
Accounts Ratios Faces Accounts Ratios Faces Accounts Ratios Faces
Accountants
(n = 23) 29.0 31.2 5.1 15.8 29.5 20.8 12.9 11.6 4.0
Academics
(n = 52) 34.0 38.8 15.4 12.8 16.6 13.2 11.2 7.6 3.8
MBA students
(n = 46) 31.2 30.4 9.0 16.0 17.9 16.3 11.4 8.0 4.1
Total 32.0 34.2 11.0 14.6 19.5 15.8 11.6 8.5 4.0
Table I.
Mean error classification
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results neglected by earlier studies, if, as suspected, the “missed failure”
is a relatively more important misclassification.
(2) The time spent processing the facial profiles is less than half that spent
on either accounting statements or financial profiles.
Paired-case t-tests are employed to compare the decision-making performance
of individual respondents for each of the means of presentation. For each of the
121 respondents the t-statistics generated are shown in Table II together with
the corresponding level of statistical significance.
The faces produce significantly fewer Type I errors, than either the
accounting statements or the financial ratios. The faces produce significantly
fewer Type II errors than the ratios, but not the statements. The high rates of
misclassification with financial ratios are consistent with the findings of
Moriarity (1979) who attribute it to a lack of understanding of what the ratios
really represent.
Table III shows the corresponding differences for processing times,
demonstrating that the faces are processed significantly more quickly than
either the accounting statements or financial ratios. The facial profiles therefore
Processing time
Ratios Faces
Accounting statements 6.5 18.1
(0.000) (0.000)
Financial ratios 13.0
(0.000)
Note: The levels of statistical significance are in parentheses
Table III.
t-statistics for processing
time differences
Financial ratios Schematic faces
Type I Type II Type I Type II
Accounting statements
Type I 0.9 9.1
(0.358) (0.000)
Type II 4.0 1.1
(0.000) (0.277)
Financial ratios
Type I 10.6
(0.000)
Type II 2.8
(0.006)
Note: The levels of statistical significance are in parentheses
Table II.
t-statistics for error
differences
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generate decisions at least as good, and often better, than using other sources,
and much more quickly.
An analysis of the error classification of Table I demonstrates the extent to
which performance differences are attributable to the accounting sophistication
of the subjects and the processing order of materials. Tables IV and V reveal the
F-statistics, and corresponding levels of significance, resulting from an ANOVA
relating error incidence and processing time to the status of subjects and
processing time.
Table IV shows that order of processing does not significantly influence the
incidence of error for any of the alternative media. The level of accounting
sophistication does impact on classification errors, with the accounting
practitioners making significantly more Type II errors using the financial ratios
Accounting Order of
sophistication processing
Accounting statements
Type I 0.7 1.1
(0.506) (0.354)
Type II 2.4 1.8
(0.100) (0.123)
Financial ratios
Type I 2.3 0.9
(0.101) (0.469)
Type II 6.5 0.4
(0.002) (0.821)
Schematic faces
Type I 5.8 1.4
(0.004) (0.214)
Type II 5.4 1.2
(0.006) (0.314)
Note: The levels of statistical significance are in parentheses
Table IV.
F-statistics for Type I/II
errors
Accounting Order of
sophistication processing
Accounting statements 1.3 0.4
(0.283) (0.798)
Financial ratios 7.7 6.2
(0.001) (0.002)
Schematic faces 0.7 2.7
(0.492) (0.023)
Note: The levels of statistical significance are in parentheses
Table V.
F-statistics for
processing times
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and the accounting academics making significantly more Type I and Type II
errors with the schematic faces.
Observed error patterns help to explain the manner of information
processing and the decision-making strategies employed. A simultaneous
consideration of profitability, short-term debt and balance sheet strength is
sufficient to avoid errors of classification for each of the alternative processing
formats[8].
We may speculate on decision-making strategies employed by reference to
the error patterns generated by respondents. A naïve processing strategy,
applied systematically, of designating companies as “failed” based on a
negative profit before tax figure, generates a familiar error pattern comprising
three Type I errors and two Type II errors. This pattern of Type I errors arises
in 18 per cent of accounting statement misclassifications (and 13 per cent of
financial ratio misclassifications); this pattern of Type II errors arises in 27 per
cent of accounting statement misclassificaitons (and 19 per cent of financial
ratio misclassifications).
The frequency of this pattern of errors suggests a myopic profit focus, to the
extent that neither balance sheet information nor industry data receive
appropriate emphasis.This single-variable fixation apparently extends to the
schematic faces, where the most common misclassification pattern (of three
Type II errors, but no Type I errors) is consistent with a strategy of designating
as failed those companies displaying a down-turned mouth. This
misclassification pattern is observed in 26 per cent of error profiles, but the
extent of error is apparently less serious because the schematic faces
automatically incorporate industry averages where a down-turned mouth is
associated not with negative profits, but profitability levels less than the
industry average. Poor performers (potential Type I errors) are, therefore,
identified and the overprediction of failure (Type II error) becomes the dominant
form of error.
Overall, 69 per cent of errors on the accounting statements, 57 per cent of
errors on ratios and 77 per cent of errors on the faces are consistent with a focus
on the profit variable alone. This processing pattern is apparently particularly
prevalent among the accounting academics, resulting in a disproportionate
number of both Type I and Type II errors. The integration of balance sheet
information on the accounting statements and ratios, corresponding to the
incorporation of upper-face features on the schematic faces, allows a rapid
reduction in the number of misclassifications.
Table V shows that the processing time due to the financial ratio analysis is
influenced by both levels of accounting sophistication and processing order.
The accountants take a significantly longer time to process the financial ratios
than either of the other groups, consistent with the unfamiliarity arguments
cited above. The processing time for the ratios is significantly shorter when
they are considered last of the three datasets. The reduction in elapsed
processing time when being processed last is common to all three information
media, but is significantly more marked in the case of the financial ratios.
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Discussion and further research
There has been limited study to date of the effectiveness of alternative methods
of presenting accounting information for financial decision purposes. This
paper explores empirically the usefulness of the schematic face as a
communication device, in a particular decision context, compared with more
conventional presentation formats. The paper addresses the relative usefulness
of schematic faces, financial ratios and accounting statements as information
formats for decision making, demonstrating that schematic faces provide an
alternative means of presentation which might provide a clear and efficient
representation, complementing existing methods. In this respect the paper
provides substantial support for the findings of Moriarity (1979) but in a
manner which produces results far more reliable than those of Moriarity or
Stock and Watson (1984). The Moriarity study has the potential for biased
outcomes favouring faces attributable to accounting ignorance, associated with
the inclusion of too few experimental subjects of any accounting sophistication.
Both of the above studies use arbitrary author-driven selections of feature
assignments which make no reference to the relevant psychological evidence on
the saliency and mobility of facial features. Neither study includes means and
standard deviations for the financial ratio information provided, running the
risk of producing results attributable to superior information and not superior
presentation, given that the schematic faces implicitly incorporate these
statistics. This present study overcomes all of these deficiencies associated with
earlier research in this area.
Evidence is provided that schematic faces are processed more quickly than
either of the more traditional methods of information presentation, with no loss
of accuracy, by users of varying levels of accounting sophistication. Repeated
misclassifications are consistent with overemphasis on the profit figure. Where
the facial profiles produce misclassifications not apparent with the other
processing media, this is consistent with undue emphasis on the mouth as a
facial characteristic. Subject feedback on their response to the use of facial
caricatures, relative to more conventional information forms, is most revealing.
Very little use is apparently made of mean and standard deviation information
when provided, so that the superiority of the face may be at least partly
attributable to the way in which it “forces” subjects to employ this additional
information. The precise assignment of the financial variables to facial features
too, appears to be relatively unimportant once subjects are familiar with the
format. This is reassuring since the message conveyed by the face is so clear
that the opportunities for manipulation might lead us to call for accounting
standards which control the assignment of variables to features. Smith et al.
(1993) suggest that the feature assignment is of much less importance to
processing in practice than the methodology employed. Evidence from
subsequent trials conducted by the authors is consistent with De Sanctis and
Jarvenpaa (1989) who suggest the presence of a learning curve in the use of
graphical information in the accounting profession. Casual observation
suggests that with practice users of schematic faces will develop a holistic
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perspective and reduce the overemphasis accorded the mouth, with the
potential for further improved decision making.
The impact of the use of caricatures on the behaviour of subjects can have
both positive and negative effects, with the potential to influence decision
making. The novelty value of schematic faces generates interest and makes them
fun to work with; however, the trend in the use of graphics and other visuals in
the annual report, as reported by Beattie and Jones (1992) has not extended to
the use of schematic faces. The message conveyed by the faces may be just too
clear for this purpose, effectively preventing their successful obfuscation by
firms wishing to disguise poor performance. Interestingly in this context,
consulting conducted by the authors to display company schematic faces at the
AGM to convey corporate performance, was discontinued once the faces of
competitors were clearly superior to those of the client company! On the negative
side, the faces may be perceived as trivial and not credible, with the potential for
lowering the content validity of the experiment. One potential subject (among
the group of accounting academics approached here) refused to take part in the
experiment on these grounds. By demonstrating the potential for improved
decision making utilizing new technologies even the most reluctant of
participants cannot help but be impressed; in this case a group of accountants of
a largely conservative demeanour make demonstrably more accurate decisions,
much more quickly, through a medium that they had previously not confronted.
The results presented here demonstrate the usefulness of schematic faces as a
decision tool in the financial environment, with the potential to have a significant
impact on the work of bankers, asset managers and financial analysts. By
providing a speedy, accurate method of processing information, particularly for
extreme cases, the schematic faces may free up management time for the more
detailed analysis of complex situations. These might feasibly include the
performance of investment managers, being appraised simultaneously on a
number of different dimensions of activity, the communication of divisional or
departmental performance based on non-financial achievement, or the
representation of companies by different aspects of their stock market
performance. All of these examples would move away from the failed/non-failed
context, the last away from the good/bad distinction, by searching instead for
patterns of performance that might yield a balanced portfolio.
Future research must also pay more attention to the differences between
individual subjects. Mackay and Villarreal (1987) hypothesize that mental state,
cultural group, personality and psychological factors may be intervening
variables worthy of investigation. Sobol and Klein (1989) echo these concerns,
demonstrating empirically that the efficiency and effectiveness of graphical
displays is dependent on the cognitive style of the respondents. They suggest
that persons with a cognitive style suited to thinking, rather than feeling, have
more success with less traditional graphic forms, though their study did not
extend to a study of schematic faces. These factors should be taken into account
in future studies in this area.
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Notes
1. The computer code employed to construct Bruckner’s version of the Chernoff face is
detailed in Wang (1978, pp. 115-20).
2. The four ratios are:
These four variables represent the same four dimensions (profitability, working capital,
gearing and liquidity) as employed by Taffler (1982) in his Z-score model. The four
variables above are preferred to his model variables (PBT/CL, CA/TL, CL/TA, NCI) on the
grounds of user familiarity.
3. This visual representation of performance, based on accounting numbers, complements
the idea of “corporate personality” developed in a numerical sense by Sorter et al. (1966).
4. The naïve users comprised a group of 30 first-year undergraduate business students who
had yet to undertake an accounting course.
5. Previous studies (e.g. Houghton, 1984) show that respondents tend to assume an
approximately equal division of failed and healthy companies. Where specific prior
probabilities are indicated (e.g. Libby, 1975) respondents may fail to treat each case on its
individual merits, preferring to rank cases on a best-to-worst basis and then group on the
basis of the given failure base rate.
6. Sample test materials used in the experiment are available from the first author.
7. This is a complex and potentially significant issue. Further empirical work is currently
being undertaken to resolve the specification of an optimum assignment of financial
variables to facial characteristics. Results to date, from Smith et al. (1993), suggest that it is
the adoption of schematic facial profiles which is important to communication, rather than
any particular feature assignment methodology.
8. The total sample of 20 cases is classified correctly through the adoption of an appropriate
linear discriminant model. A simple decision strategy based on a unit-weighted linear
combination of three of the four financial ratios generates one Type II error:
A combination of down-turned mouth, small eyes and perplexed eyebrows similarly
correctly identify all of the failed companies from the schematic faces.
PBIT
TA
TL
NW
QA
CL
< 0.– +
•
•
•
•
Profitability by
Profit before interest and tax
Total assets
PBIT
TA
;
Working capital position by
Working capital
Net capital employed
WC
NCE
;
Financial leverage by
Total liabilities
Net worth
TL
NW
; and
Liquidity by
Quick assets
Current liabilities
QA
CL
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