On The Financial Characteristics Of Firms That Reported The Highest Returns To Total Capital During A Period Of Economic Recession And Financial Market Turmoil

摘要

The purpose of this study is to provide a financial analysis of those firms described by Value Line as having reported the highest returns to total capital in the recent period of economic recession and financial market turmoil. Specifically, the analysis will test for significant differences in the financial profiles of those firms that reported the highest levels of returns to total capital in that period, and companies selected at random but from the same period and from the same industries. A unique financial profile is established for the companies reporting the high returns, and it is suggested that the profile may be used to identify firms that will experience high returns to total capital in future periods of economic downturn. As in previous studies of this nature Multiple Discriminant Analysis is used.