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Capital Structure and Corporate Failure Prediction : Theory and Applications

Pasaribu, Rowland Bismark - 2017

This paper addresses the theoretical foundations of corporate failure prediction, using the neo-classical theory of capital structure as a starting point. The paper intends to demonstrate the feasibility of such an approach in a simple setting, i.e. by using a simple theoretical model and a...

Persistent link: https://www.econbiz.de/10012975529

Business cycles and leverage in collateral constraints

Won Jun Nah - In: Seoul journal of economics 23 (2010) 4, pp. 491-532

Persistent link: https://www.econbiz.de/10008778119

Testing the Q Theory of Investment in the Frequency Domain

Kilponen, Juha - 2017

We revisit the empirical performance of the Q theory of investment, explicitly taking into account the frequency … dependence of investment, Tobin's Q, and cash flow. The time series are decomposed into orthogonal components of different … wavelet approach and proxies for Q recently suggested in the investment literature also significantly improves the quality of …

Persistent link: https://www.econbiz.de/10012963438

Interpretable machine learning for earnings forecasts : leveraging high-dimensional financial statement data

Hess, Dieter; Simon, Frederik; Weibels, Sebastian - 2025 - This version: Feb. 2025

subsamples and translates into more profitable investment strategies. Extensive model interpretation reveals that income …

Persistent link: https://www.econbiz.de/10015438462

Using 10-K Text to Gauge Financial Constraints

Bodnaruk, Andriy - 2015

Measuring the extent to which a firm is financially constrained is critical in assessing capital structure. Extant measures of financial constraints focus on macro firm characteristics such as age and size – variables highly correlated with other firm attributes. We parse 10-K disclosures...

Persistent link: https://www.econbiz.de/10013035014

The Cost of Fraud Prediction Errors

Beneish, Messod D. - 2020

The paper provides a cost-based explanation for decision makers' reluctance to use fraud prediction models, particularly as these models have nearly doubled their success at identifying fraud (true positive rates) when compared to the initial models in Beneish (1997, 1999). We estimate the costs...

Persistent link: https://www.econbiz.de/10012842589

Evaluating Cross-Sectional Forecasting Models for Implied Cost of Capital

Li, Kevin K. - 2014

The computation of implied cost of capital (ICC) is constrained by the lack of analyst forecasts for half of all firms. Hou, van Dijk, and Zhang (2012, HVZ) present a cross-sectional model to generate forecasts in order to compute ICC. However, the forecasts from the HVZ model perform worse than...

Persistent link: https://www.econbiz.de/10013057608

A Theory of Asset Pricing and Performance Evaluation for Minority Banks with Implications for Bank Failure Prediction, Compensating Risk, and CAMELS Rating

Charles-Cadogan, G. - 2011

Persistent link: https://www.econbiz.de/10013132494

Evaluating Cross-Sectional Forecasting Models for Implied Cost of Capital

Li, Kevin K. - 2014

Persistent link: https://www.econbiz.de/10013063029

Forecasting Earnings with Predicted, Conditional Probability Density Functions

Hendriock, Mario - 2021

This study provides empirical evidence for the efficacy of deriving firms' earnings forecasts from predictions of the complete, conditional probability density function (pdf). Relative to cross-sectional earnings forecasts based on OLS regressions, improvements of accuracy, bias and measures for...

Persistent link: https://www.econbiz.de/10013216393