A multivariate study of firm performance and the use of modern analytical tools and financial techniques

A multivariate study of firm performance and the use of modern analytical tools and financial techniques

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Article ID: iaor1989388
Country: United States
Volume: 19
Issue: 3
Start Page Number: 79
End Page Number: 87
Publication Date: May 1989
Journal: Interfaces
Authors: ,
Keywords: computers
Abstract:

A survey of the Fortune 500 firms reveals that major domestic corporations are selective yet progressive adoptors of formal analytical procedures and hold positive perceptions regarding the role of microcomputers in the corporate decision-making process. The authors used logistic regression and multiple discriminate models to predict a firm’s performance relative to that of its primary industry. Three analytical techniques (financial leverage, inventory management, and internal rate-of-return) plus widespread encouragement of the use of personal computers positively influence firm performance.

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