You are not currently logged in.
Access your personal account or get JSTOR access through your library or other institution:
If You Use a Screen ReaderThis content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Cash Flow in Bankruptcy Prediction
Michael J. Gombola, Mark E. Haskins, J. Edward Ketz and David D. Williams
Vol. 16, No. 4 (Winter, 1987), pp. 55-65
Stable URL: http://www.jstor.org/stable/3666109
Page Count: 11
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Preview not available
Most previous studies of the influence of cash flow in bankruptcy prediction may be flawed because (1) they do not adjust for all accruals in deriving an estimate of cash flow from operations (CFFO), and (2) they do not isolate discrete time periods in which a cash flow effect may or may not be present. We isolate a period of time (1973-1981) in which a CFFO effect is possible. Even after this methodological improvement, it is found that CFFO is not a significant predictor of corporate bankruptcy.
Financial Management © 1987 Financial Management Association International