{"id":"https://openalex.org/W101174249","doi":"https://doi.org/10.2308/tar-9403090143","title":"Measuring Equilibrating Forces of Financial Ratios.","display_name":"Measuring Equilibrating Forces of Financial Ratios.","publication_year":1993,"publication_date":"1993-10-01","ids":{"openalex":"https://openalex.org/W101174249","doi":"https://doi.org/10.2308/tar-9403090143","mag":"101174249"},"language":"en","primary_location":{"id":"doi:10.2308/tar-9403090143","doi":"https://doi.org/10.2308/tar-9403090143","is_oa":false,"landing_page_url":"https://doi.org/10.2308/tar-9403090143","pdf_url":null,"source":{"id":"https://openalex.org/S160506855","display_name":"The Accounting Review","issn_l":"0001-4826","issn":["0001-4826","1558-7967"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","fnege-1-star","ft50","jufo-3","norway-2","poland-200","russia-white-list-1","utd24","vabb-shw"],"host_organization":"https://openalex.org/P4310316290","host_organization_name":"American Accounting Association","host_organization_lineage":["https://openalex.org/P4310316290"],"host_organization_lineage_names":["American Accounting Association"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"The Accounting Review","raw_type":"journal-article"},"volume":null,"type":"article","indexed_in":["crossref"],"open_access":{"is_oa":false,"oa_status":"closed","oa_url":null,"any_repository_has_fulltext":false},"authorships":[{"author_position":"first","author":{"id":"https://openalex.org/A5079266249","display_name":"Harry Zvi Davis","orcid":null,"observed_orcids":[]},"institutions":[{"id":"https://openalex.org/I141810926","display_name":"Baruch College","ror":"https://ror.org/023qavy03","country_code":"US","type":"education","lineage":["https://openalex.org/I141810926"]},{"id":"https://openalex.org/I174216632","display_name":"City University of New York","ror":"https://ror.org/00453a208","country_code":"US","type":"education","lineage":["https://openalex.org/I174216632"]}],"countries":["US"],"is_corresponding":false,"raw_author_name":"Harry Zvi Davis","raw_affiliation_strings":["Baruch College, City University of New York 1"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"Baruch College, City University of New York 1","institution_ids":["https://openalex.org/I141810926","https://openalex.org/I174216632"]}]},{"author_position":"last","author":{"id":"https://openalex.org/A5017604752","display_name":"Yoram C. Peles","orcid":null,"observed_orcids":[]},"institutions":[{"id":"https://openalex.org/I197251160","display_name":"Hebrew University of Jerusalem","ror":"https://ror.org/03qxff017","country_code":"IL","type":"education","lineage":["https://openalex.org/I197251160"]},{"id":"https://openalex.org/I200769079","display_name":"Hong Kong University of Science and Technology","ror":"https://ror.org/00q4vv597","country_code":"HK","type":"education","lineage":["https://openalex.org/I200769079"]}],"countries":["HK","IL"],"is_corresponding":false,"raw_author_name":"Yoram C. Peles","raw_affiliation_strings":["Hong Kong University of Science and Technology 3","The Hebrew University of Jerusalem 2"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"Hong Kong University of Science and Technology 3","institution_ids":["https://openalex.org/I200769079"]},{"raw_affiliation_string":"The Hebrew University of Jerusalem 2","institution_ids":["https://openalex.org/I197251160"]}]}],"institutions":[],"countries_distinct_count":3,"institutions_distinct_count":4,"corresponding_author_ids":[],"corresponding_institution_ids":[],"apc_list":null,"apc_paid":null,"fwci":4.5345,"has_fulltext":false,"cited_by_count":37,"citation_normalized_percentile":{"value":0.93417462,"is_in_top_1_percent":false,"is_in_top_10_percent":true},"cited_by_percentile_year":{"min":88,"max":98},"biblio":{"volume":"68","issue":"4","first_page":"725","last_page":"747"},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T12123","display_name":"Financial Analysis and Corporate Governance","score":0.7509999871253967,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},"topics":[{"id":"https://openalex.org/T12123","display_name":"Financial Analysis and Corporate Governance","score":0.7509999871253967,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T10019","display_name":"Corporate Finance and Governance","score":0.1420000046491623,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T12544","display_name":"Working Capital and Financial Performance","score":0.04919999837875366,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}}],"keywords":[{"id":"https://openalex.org/keywords/financial-ratios","display_name":"financial ratios","score":0.6899999976158142},{"id":"https://openalex.org/keywords/equilibrium-values","display_name":"equilibrium values","score":0.7789999842643738},{"id":"https://openalex.org/keywords/speed-of-adjustment","display_name":"speed of adjustment","score":0.5929999947547913},{"id":"https://openalex.org/keywords/random-walks","display_name":"random walks","score":0.8220000267028809},{"id":"https://openalex.org/keywords/liquidity-ratios","display_name":"liquidity ratios","score":0.7839999794960022},{"id":"https://openalex.org/keywords/earnings-per-share","display_name":"earnings per share","score":0.9760000109672546},{"id":"https://openalex.org/keywords/capital-structure","display_name":"capital structure","score":0.7680000066757202},{"id":"https://openalex.org/keywords/performance-indicators","display_name":"performance indicators","score":0.5529999732971191},{"id":"https://openalex.org/keywords/firm-size","display_name":"firm size","score":0.5379999876022339},{"id":"https://openalex.org/keywords/industry-impact","display_name":"industry effects","score":0.6480000019073486},{"id":"https://openalex.org/keywords/management-control","display_name":"management control","score":0.5080000162124634},{"id":"https://openalex.org/keywords/liquidity-shocks","display_name":"liquidity shocks","score":0.47099998593330383},{"id":"https://openalex.org/keywords/mergers-and-acquisitions","display_name":"mergers and acquisitions","score":0.8040000200271606},{"id":"https://openalex.org/keywords/firm-performance-prediction","display_name":"firm performance prediction","score":0.3919999897480011}],"concepts":[{"id":"https://openalex.org/C183582576","wikidata":"https://www.wikidata.org/wiki/Q184783","display_name":"Market liquidity","level":2,"score":0.5883658528327942},{"id":"https://openalex.org/C2781300812","wikidata":"https://www.wikidata.org/wiki/Q178061","display_name":"Shock (circulatory)","level":2,"score":0.5651757121086121},{"id":"https://openalex.org/C162324750","wikidata":"https://www.wikidata.org/wiki/Q8134","display_name":"Economics","level":0,"score":0.5651004314422607},{"id":"https://openalex.org/C149782125","wikidata":"https://www.wikidata.org/wiki/Q160039","display_name":"Econometrics","level":1,"score":0.5310350656509399},{"id":"https://openalex.org/C2776291640","wikidata":"https://www.wikidata.org/wiki/Q2912517","display_name":"Value (mathematics)","level":2,"score":0.45098599791526794},{"id":"https://openalex.org/C556758197","wikidata":"https://www.wikidata.org/wiki/Q580018","display_name":"Monetary economics","level":1,"score":0.32937002182006836},{"id":"https://openalex.org/C105795698","wikidata":"https://www.wikidata.org/wiki/Q12483","display_name":"Statistics","level":1,"score":0.23941481113433838},{"id":"https://openalex.org/C33923547","wikidata":"https://www.wikidata.org/wiki/Q395","display_name":"Mathematics","level":0,"score":0.20181584358215332},{"id":"https://openalex.org/C126322002","wikidata":"https://www.wikidata.org/wiki/Q11180","display_name":"Internal medicine","level":1,"score":0.0},{"id":"https://openalex.org/C71924100","wikidata":"https://www.wikidata.org/wiki/Q11190","display_name":"Medicine","level":0,"score":0.0}],"mesh":[],"locations_count":3,"locations":[{"id":"doi:10.2308/tar-9403090143","doi":"https://doi.org/10.2308/tar-9403090143","is_oa":false,"landing_page_url":"https://doi.org/10.2308/tar-9403090143","pdf_url":null,"source":{"id":"https://openalex.org/S160506855","display_name":"The Accounting Review","issn_l":"0001-4826","issn":["0001-4826","1558-7967"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","fnege-1-star","ft50","jufo-3","norway-2","poland-200","russia-white-list-1","utd24","vabb-shw"],"host_organization":"https://openalex.org/P4310316290","host_organization_name":"American Accounting Association","host_organization_lineage":["https://openalex.org/P4310316290"],"host_organization_lineage_names":["American Accounting Association"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"The Accounting Review","raw_type":"journal-article"},{"id":"mag:101174249","doi":null,"is_oa":false,"landing_page_url":"https://www.jstor.org/stable/pdfplus/248501.pdf","pdf_url":null,"source":{"id":"https://openalex.org/S160506855","display_name":"The Accounting Review","issn_l":"0001-4826","issn":["0001-4826","1558-7967"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","fnege-1-star","ft50","jufo-3","norway-2","poland-200","russia-white-list-1","utd24","vabb-shw"],"host_organization":"https://openalex.org/P4310316290","host_organization_name":"American Accounting Association","host_organization_lineage":["https://openalex.org/P4310316290"],"host_organization_lineage_names":["American Accounting Association"],"type":"journal"},"license":null,"license_id":null,"version":null,"is_accepted":false,"is_published":false,"raw_source_name":"Accounting review: A quarterly journal of the American Accounting Association","raw_type":null},{"id":"mag:3146781528","doi":null,"is_oa":false,"landing_page_url":"http://repository.ust.hk/ir/Record/1783.1-14657","pdf_url":null,"source":{"id":"https://openalex.org/S160506855","display_name":"The Accounting Review","issn_l":"0001-4826","issn":["0001-4826","1558-7967"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","fnege-1-star","ft50","jufo-3","norway-2","poland-200","russia-white-list-1","utd24","vabb-shw"],"host_organization":"https://openalex.org/P4310316290","host_organization_name":"American Accounting Association","host_organization_lineage":["https://openalex.org/P4310316290"],"host_organization_lineage_names":["American Accounting Association"],"type":"journal"},"license":null,"license_id":null,"version":null,"is_accepted":false,"is_published":false,"raw_source_name":"The Accounting Review","raw_type":null}],"best_oa_location":null,"sustainable_development_goals":[],"sustainable_development_goals_aurora":[],"study_designs":[],"awards":[],"funders":[],"has_content":{"grobid_xml":false,"pdf":false},"content_urls":null,"referenced_works_count":28,"referenced_works":["https://openalex.org/W587184346","https://openalex.org/W1513430276","https://openalex.org/W1560984923","https://openalex.org/W1606272114","https://openalex.org/W1965664588","https://openalex.org/W1980395115","https://openalex.org/W1994102621","https://openalex.org/W2010487264","https://openalex.org/W2017002353","https://openalex.org/W2019257675","https://openalex.org/W2020848494","https://openalex.org/W2028436159","https://openalex.org/W2038621549","https://openalex.org/W2042074295","https://openalex.org/W2056851492","https://openalex.org/W2066523057","https://openalex.org/W2073150243","https://openalex.org/W2096847987","https://openalex.org/W2124532504","https://openalex.org/W2124597406","https://openalex.org/W2153524047","https://openalex.org/W2153754975","https://openalex.org/W2289809641","https://openalex.org/W2319041464","https://openalex.org/W2334816433","https://openalex.org/W2611591252","https://openalex.org/W2642534790","https://openalex.org/W2905060314"],"related_works":["https://openalex.org/W6983334425","https://openalex.org/W265024229","https://openalex.org/W7097948552","https://openalex.org/W1483515876","https://openalex.org/W97554044","https://openalex.org/W2073833840","https://openalex.org/W1593109150","https://openalex.org/W633301665","https://openalex.org/W978669510","https://openalex.org/W1982567835"],"abstract_inverted_index":{"Abstract":[0],"We":[1,131],"test":[2,62],"several":[3],"categories":[4],"of":[5,117,150,205,241,347,351,358,377,387,400,410,420,454,464],"ratios--short-term":[6],"liquidity,":[7],"performance":[8,250,359,381],"measures,":[9],"earnings":[10],"per":[11],"share":[12,341],"(EPS),":[13],"capital":[14],"structure,":[15],"and":[16,70,138,146,157,264,305,336,380,383,423,434],"the":[17,38,42,92,102,115,133,142,147,151,183,206,209,242,260,268,289,298,311,320,326,343,348,352,394,411,418,452,465],"gross":[18,265],"margin":[19,266],"ratio-to":[20],"determine":[21],"if":[22,81],"they":[23],"have":[24,77,167,219,229,460],"equilibrium":[25,36,46,79,129,171,224,235,277,389,421],"values":[26,431],"or":[27,257,432],"follow":[28],"a":[29,84,113,193,199,203,220,230,271,339,385,398,408],"random":[30],"walk.":[31],"For":[32,249],"ratios":[33,218,227,287,360,382,422,467],"with":[34,57,120,363,397],"an":[35,78,128,177,403],"value,":[37],"speed":[39,145],"at":[40],"which":[41],"ratio":[43,75,86,103],"returns":[44],"to":[45,96,104,127,166,223,234,239,262,276,288,342],"from":[47,91,402],"out-of-equilibrium":[48],"conditions":[49],"is":[50,244,323,361],"measured.":[51],"Since":[52],"equilibrating":[53,154,196],"forces":[54,124,197],"may":[55,76,109,125],"differ":[56,314],"firm":[58,165],"size,":[59],"we":[60,175],"also":[61,228,449],"for":[63,259,315,440],"differences":[64],"in":[65,181,208,437,451],"adjustment":[66,135,144,222,232,274,301,312,322,395,412,425],"speeds":[67,426],"between":[68],"small":[69],"large":[71,295],"firms.":[72,296],"An":[73],"accounting":[74],"value":[80],"management":[82,95,108,306,321,337],"targets":[83],"certain":[85],"so":[87],"that":[88,99,189,215,282,310,333,355,369,443],"any":[89],"deviation":[90],"target":[93,291],"causes":[94],"initiate":[97],"actions":[98,119,456],"will":[100,444],"return":[101],"target.":[105],"Also,":[106,367],"although":[107],"not":[110],"be":[111,445],"targeting":[112],"ratio,":[114],"interaction":[116],"management's":[118],"external":[121],"market":[122],"industry":[123,156,304,327,335],"lead":[126],"value.":[130,172],"investigate":[132],"total":[134,300,344],"over":[136,255,414,462],"time":[137,405],"then":[139],"assess":[140],"both":[141,334],"relative":[143,148],"weights":[149],"two":[152],"main":[153],"forces:":[155],"management.":[158],"The":[159,186],"statistical":[160],"technique":[161],"used":[162],"allows":[163],"each":[164],"its":[168],"own,":[169],"unknown":[170],"In":[173],"addition,":[174],"remove":[176],"important":[178],"sampling":[179],"bias":[180],"measuring":[182],"autocorrelation":[184],"coefficient.":[185],"results":[187],"show":[188,354],"when":[190],"firms":[191,284,368,401,436,442],"experience":[192],"liquidity":[194,217,379],"shock,":[195],"counterbalance":[198],"little":[200],"more":[201,292],"than":[202,294,325,374],"third":[204],"shock":[207,243],"next":[210],"period.":[211,248],"This":[212],"finding":[213],"suggests":[214,332],"firms'":[216],"fast":[221],"values.":[225,278],"EPS":[226,390],"high":[231],"rate":[233,396],"value;":[236],"about":[237,417],"one-third":[238],"one-half":[240],"adjusted":[245],"within":[246],"one":[247],"measures":[251],"(net":[252],"operating":[253],"income":[254],"sales":[256],"assets),":[258],"equity":[261],"debt":[263],"ratios.":[267,391],"findings":[269],"imply":[270],"relatively":[272],"long":[273],"process":[275],"Supplementary":[279],"tests":[280],"suggest":[281],"smaller":[283],"adjust":[285],"their":[286,378,388,424],"optimal":[290],"swiftly":[293],"Separating":[297],"ratios'":[299],"effect":[302],"into":[303],"components":[307],"provides":[308],"evidence":[309],"rates":[313],"different":[316],"industries.":[317],"On":[318],"average,":[319],"faster":[324],"effect.":[328],"A":[329],"weighting":[330],"measure":[331],"contribute":[338],"significant":[340],"adjustment.":[345],"Tests":[346],"predictive":[349],"power":[350],"model":[353],"historical":[356],"control":[357,376,461],"correlated":[362],"future":[364,430],"actual":[365],"performance.":[366],"were":[370],"acquired":[371],"showed":[372,384],"better":[373],"average":[375],"destabilization":[386],"Finally,":[392],"comparing":[393],"sample":[399],"earlier":[404],"period":[406],"shows":[407],"stability":[409],"behavior":[413],"time.":[415],"Information":[416],"existence":[419],"can":[427,448],"help":[428,450],"predict":[429],"events,":[433],"identify":[435],"special":[438],"categories,":[439],"example,":[441],"acquired.":[446],"It":[447],"evaluation":[453],"managerial":[455],"insofar":[457],"as":[458],"managers":[459],"aspects":[463],"financial":[466],"examined.":[468]},"counts_by_year":[{"year":2021,"cited_by_count":1},{"year":2019,"cited_by_count":1},{"year":2017,"cited_by_count":3},{"year":2016,"cited_by_count":1},{"year":2015,"cited_by_count":5},{"year":2014,"cited_by_count":3},{"year":2013,"cited_by_count":2},{"year":2012,"cited_by_count":5}],"updated_date":"2026-10-31T12:09:11.096373","created_date":"2016-06-24T00:00:00"}