We propose a modification to the Dechow and Dichev (2002) model (DD hereafter) by replacing realized next-period cash flows with forecasted future cash flows. We first theorize the relation between the modified- and original DD model and that between abnormal accruals from the modified DD model...

We propose an insurance network model that allows to deal with default contagion risks with a particular aim of capturing cascading effects at the time of defaults. We capture these effects by finding an equilibrium allocation of settlements which can be found as the unique optimal solution of...