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Financial statement analysis: a review and current issues

Financial statement analysis: a review and current issues The literature on financial statement analysis attempts to improve fundamental analysis and to identify market inefficiencies with respect to financial statement information.Design/methodology/approachIn this paper, the author reviews the extant research on financial statement analysis.FindingsThe author then provides some preliminary evidence using Chinese data and offer suggestions for future research, with a focus on utilising unique features of the Chinese business environment as motivation.Originality/valueThe author notes that there has been no work that the author could locate specifically on Chinese FSA research. The unique business environment in China, relative to the US where the vast majority of this work has been conducted, should motivate any studies, especially given the author documents the robust finding in terms of the mean reversion in profitability. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png China Finance Review International Emerald Publishing

Financial statement analysis: a review and current issues

China Finance Review International , Volume 12 (1): 19 – Feb 1, 2022

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
2044-1398
DOI
10.1108/cfri-10-2021-0208
Publisher site
See Article on Publisher Site

Abstract

The literature on financial statement analysis attempts to improve fundamental analysis and to identify market inefficiencies with respect to financial statement information.Design/methodology/approachIn this paper, the author reviews the extant research on financial statement analysis.FindingsThe author then provides some preliminary evidence using Chinese data and offer suggestions for future research, with a focus on utilising unique features of the Chinese business environment as motivation.Originality/valueThe author notes that there has been no work that the author could locate specifically on Chinese FSA research. The unique business environment in China, relative to the US where the vast majority of this work has been conducted, should motivate any studies, especially given the author documents the robust finding in terms of the mean reversion in profitability.

Journal

China Finance Review InternationalEmerald Publishing

Published: Feb 1, 2022

Keywords: Financial statement analysis; Fundamental analysis; Forecasting; Persistence; Mean reversion

References