Company financial health : financial statement users' and compilers' perceptions

dc.contributor.authorDu Toit, Elda
dc.contributor.authorVermaak, Frans N.S.
dc.contributor.emailelda.dutoit@up.ac.zaen_ZA
dc.date.accessioned2015-02-20T08:47:20Z
dc.date.available2015-02-20T08:47:20Z
dc.date.issued2014-10
dc.description.abstractSome prior studies have investigated using analyses of financial statements to reveal companies’ financial health, but the usefulness of using such analyses to reveal the financial health of companies and possible presence of accounting irregularities in South African companies needed further investigation. This study examines whether users and compilers of financial statements believe that analysing financial statements can provide clear indications of companies’ financial health. The study was conducted by means of a structured questionnaire based on statements made by experts in the field of accounting and financial statement analysis. The results from 237 respondents show that the compilers and users of financial statements are convinced of the usefulness of financial statement analysis in evaluations of companies’ financial health. This suggests that close scrutiny of a company’s financial statements, with an attitude of scepticism, has the potential to reveal possible irregularities and raise red flags about unhealthy company practices.en_ZA
dc.description.librarianhb2015en_ZA
dc.description.urihttp://reference.sabinet.co.za/sa_epublication/jefsen_ZA
dc.identifier.citationDu Toit, E & Vermaak, F 2014, 'Company financial health : financial statement users' and compilers' perceptions', Journal of Economic and Financial Sciences, vol. 7, no. 3, pp. 819-836.en_ZA
dc.identifier.issn1995-7076 (print)
dc.identifier.urihttp://hdl.handle.net/2263/43740
dc.language.isoenen_ZA
dc.publisherFaculty of Economic and Financial Sciences, University of Johannesburgen_ZA
dc.rightsFaculty of Economic and Financial Sciences, University of Johannesburgen_ZA
dc.subjectAccounting irregularitiesen_ZA
dc.subjectDecision-makingen_ZA
dc.subjectDecision-usefulnessen_ZA
dc.subjectFinancial healthen_ZA
dc.subjectFinancial statementsen_ZA
dc.subjectPredictionen_ZA
dc.subjectRatio analysisen_ZA
dc.titleCompany financial health : financial statement users' and compilers' perceptionsen_ZA
dc.typeArticleen_ZA

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