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- Title
Communicating Financial Information Through Multidimensional Graphics.
- Authors
MORIARTY, SHANE
- Abstract
The article reports on an experiment where schematic faces are used to summarize financial variables which can be interpreted by those who need to determine the financial status of a firm. The study, whose participants include accounting students at the University of Oklahoma, found that schematic faces are better than financial ratios in communicating information relative to firms' classification as potential failures. An example of faces, balances, and ratios formats used in the experiment, a list of variables and associated facial features, and a list of participating firms are given. Data shows distribution of performance scores, time taken to complete tasks, number of classification errors, and average errors. The Altman model's error rate for predicting bankruptcy is mentioned.
- Subjects
BUSINESS forecasting; GRAPHIC methods; FACE (Philosophy); COMMUNICATION models; SCHEMAS (Psychology); FINANCIAL performance
- Publication
Journal of Accounting Research (Wiley-Blackwell), 1979, Vol 17, Issue 1, p205
- ISSN
0021-8456
- Publication type
Article
- DOI
10.2307/2490314