Includes bibliographical references and index.

1. Financial Analysis and Financial Information -- 2. Financial Statements and Creativity -- 3. Ratio Analysis: Methods and Issues -- 4. Time-series Analysis and Forecasting -- 5. Capital Markets and Asset Pricing -- 6. Accounting, Value and the Capital Market -- 7. Links between Accounting Numbers and Economic Fundamentals -- 8. Corporate Takeovers and Allied Activity -- 9. Corporate Failure Prediction and Credit Evaluation -- 10. Social, Environmental and Employee Reporting -- 11. Regulation of Accounting.

The study of financial analysis is a demanding mix of interdisciplinary techniques which incorporates a broad spectrum of methodologies and theories drawn from finance, economics, statistics, accounting, strategy and sociology. In Financial Analysis these eclectic disciplines are woven together to explain how to analyse and interpret financial information for the purpose of assessing the performance and prospects of a company. Research evidence concerning the behaviour of firms, financial information and financial analysis provides the backbone of this new edition; recent important theoretical developments are also included. Coverage of the basic knowledge and skills is followed by their application to various analytical tasks including merger analysis, bankruptcy prediction, investment decisions, and social and environmental reporting. The text is written for advanced undergraduates, MBA and other postgraduate students of accounting, finance, business, economics and financial economics on courses in financial analysis, financial statement analysis and accounting theory.