This study analyses the contingency effects of accruals on default prediction. Information is classified into three categories: financial statement, audit report, and non-financial information. It is proposed that absolute accruals moderate the relationship between default risk and financial...

This study analyses the contingency effects of accruals on default prediction. Information is classified into three categories: financial statement, audit report, and non-financial information. It is proposed that absolute accruals moderate the relationship between default risk and financial...

This paper first briefly discusses six alternative methods that have been applied to financial failure prediction: linear discriminant analysis, logit analysis, recursive partitioning, survival analysis, neural networks and the human information processing approach. The main objective was to...

The purpose of the study is to develop a logistic model based on financial statement information to identify qualified audit reports. The empirical data are retrieved from audit reports from thirty-seven publicly-traded companies (HeSE) in the years 1992, 1993 and 1994. Thus, there are in all...

The purpose of this study is to evaluate the information contained in static and dynamic inventory cash management models to predict failure in a sample of 41 small and middle-sized Finnish bankrupt firms and their nonbankrupt counterparts. The results indicate that the estimates of the (scale)...

There remains little consensus about how to define and formulate audit quality. It does not have a consistent definition and operationalization across studies and this has troubled theorists for many years. This study contributes to this discussion by introducing a probability tree model of...