Purpose – The purpose is to explore the differences and similarities between fraudulent financial reporting detection and business failure prediction (BFP) models, especially in terms of which explanatory variables and methodologies are most effective. Design/methodology/approach – In total,...

Purpose – The objective of this paper is to stress the importance of detecting financial frauds in predicting business failures disclosed by the unexpected financial crisis brought by Enron, Worldcom and other corporate distresses involving accounting irregularities....