We examine the interactions between business failures and macroeconomic aggregates, and specifically the accounts of policy-induced changes in the macroeconomy for the observed fluctuations of UK business failures in the period 1966-2003 using the vector error-correction model (VECM). The...

This study investigates the effects of financial statement comparability on corporate expected default risk (EDF). Based on three different comparability measures, we find that financial statement comparability is negatively related to the EDF in the current and subsequent periods. This negative...