financial analysis literature review

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China Finance Review International

ISSN : 2044-1398

Article publication date: 7 December 2021

Issue publication date: 1 February 2022

The literature on financial statement analysis attempts to improve fundamental analysis and to identify market inefficiencies with respect to financial statement information.

Design/methodology/approach

In this paper, the author reviews the extant research on financial statement analysis.

The author then provides some preliminary evidence using Chinese data and offer suggestions for future research, with a focus on utilising unique features of the Chinese business environment as motivation.

Originality/value

The author notes that there has been no work that the author could locate specifically on Chinese FSA research. The unique business environment in China, relative to the US where the vast majority of this work has been conducted, should motivate any studies, especially given the author documents the robust finding in terms of the mean reversion in profitability.

• Financial statement analysis
• Fundamental analysis
• Forecasting
• Persistence
• Mean reversion

Jackson, A.B. (2022), "Financial statement analysis: a review and current issues", China Finance Review International , Vol. 12 No. 1, pp. 1-19. https://doi.org/10.1108/CFRI-10-2021-0208

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A Review of the Research on Financial Performance and Its Determinants

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• First Online: 30 May 2020
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• Mihaela Brindusa Tudose 5 &
• Silvia Avasilcai 5  

Part of the book series: Springer Proceedings in Business and Economics ((SPBE))

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• International Symposium in Management Innovation for Sustainable Management and Entrepreneurship

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To carry out the review, the study was designed in such a manner as to enable us to: (a) identify the degree of interest that researchers displayed for scientific grounding of concepts they operate with and (b) identify the degree to which new lines of research have been shaped on determinants of financial performance. Based on a sample of 45 articles which analyzed the corporate financial performance, published during 2014–2019, was established a database which details: the researches’ topic; dependent and independent analyzed variables (and the indicators used for their assessment); samples; sources of data and periods in which they have been collected; results of the research; and authors’ contributions in defining the concept of performance. In terms of study’s first aim, we have shown that authors are concerned with grounding concepts with which they operate, but they mostly focus on the determinants and not on the financial performance. In terms of determinants of the financial performance, the study reveals that the research is more detailed and they extend the analyses with new variables (such as ethics of stakeholders, corporate lobbying, corporate culture, green credit or non-financial reporting) for explaining the dynamics of the financial performance.

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Mihaela Brindusa Tudose & Silvia Avasilcai

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Gyula Bakacsi

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Tudose, M.B., Avasilcai, S. (2020). A Review of the Research on Financial Performance and Its Determinants. In: Prostean, G., Lavios Villahoz, J., Brancu, L., Bakacsi, G. (eds) Innovation in Sustainable Management and Entrepreneurship. SIM 2019. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-44711-3_17

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