The objective of this paper is to explore the linkage between corporate financial conditions\nand the market valuation of the famed US chemical industry firms by the case study using\nfinancial ratio and market data. More concretely, we first conduct corporate financial ratio\nanalyses including the Du Pont system analysis as to four well-known large chemical\nindustry firms in the US. Our analyzing period is from the fiscal year of 1979 to 2012. After\nthe financial ratio analyses for the above period, we further examine the relations between\ncorporate financial conditions and the market valuation of the four US firms by using their\nstock price data after the end of the fiscal year of 2012. As a result, the corporate financial\nconditions of the four firms at the end of the fiscal year of 2012 appear to be adequately\nreflected in the subsequent stock prices in equity markets.
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