We investigate the role of expected accounting losses in bankruptcy prediction. To form expectations, we estimate firm-specific expected profitability distributions following Chang et al. (2021). We find that i) an expected loss dummy, ii) the expected probability to realize future losses, and...

Economic perspectives on climate change loom large since the publication of the commonly called Stern Report, Economics of Climate Change. A great number of studies subsequently employ similar approaches. Considering the huge uncertainties in climate science, however, these calculations raise a...

We substantially improve cross-sectional earnings forecast models, such as Hou, van Dijk, and Zhang (2012), by enriching their information sets by an interim earnings growth measure extracted from quarterly reports. This yields significantly more accurate out-of-sample earnings forecasts and...