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The Accounting Review Vol. 49 No. 3 1974

On the Usefulness of Financial Ratios to Investors in Common Stock: A Comment.

A. Rashad Abdel-Khalik

Assistant Professor, Graduate School of Business, Columbia University. 1

Abstract

This article presents a comment on the study of the usefulness of financial ratios to investors in common stock in the U.S. It is not clear if the usefulness of the financial ratios would be ascertained. It shows that the strong conclusions made regarding the lack of usefulness of financial ratios may not have been warranted. The research given design and the testing procedure are not quite appropriate for drawing a definitive statement about the usefulness of financial ratios. The study, however, provides a good base for future efforts in the area.

DOI
10.2308/tar-4515059
Volume
49
Issue
3
Pages
547-550
Language
en
Sources
crossref openalex

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