Purpose: Beginning from the assumption that accrual accounting is useful in ensuring the high performance of management systems, this article investigates explanatory factors concerning the level of accrual accounting adoption in municipalities on the Indonesia island of Java....

We use a vector error correction model to study the long-term relationship between aggregate expected default frequency and the macroeconomic development, i.e. CPI, industry production and short-term interest rate. The model is used to forecast the median expected default frequency of the...

The purpose of this research is to determine whether bankruptcy forecasting models are subject to industry and time specific effects. A sample of 15,848 firms was obtained from the Compustat and CRSP databases, spanning the time period 1950 to 2013, of which 396 were bankrupt. Using five models...

This study proposes a simple theoretical framework that allows for assessing financial distress up to five years in advance. We jointly model financial distress by using two of its key driving factors: declining cash-generating ability and insufficient liquidity reserves. The model is based on...

I employ a variety of machine learning techniques to predict corporate bankruptcies. I compare machine learning techniques' predictions with the ones of reduced-form regressions and structural models. To assess the performances of different models, I compute a range of scores both in-sample and...

The aim of this article is to prove the key role of the structure of the research sample used for accuracy determining on the accuracy of bankruptcy models. The creators of these models report the accuracy usually in the range of 60 to 90%. The authors of this article claim that these values are...

Bankruptcy and delisting due to other failures are two closely related yet sharply different distress events. Using a state-of-the-art adaptive Lasso variable selection method, we identify two different models for bankruptcy risk and other-failure risk. Both selected models gain better...

The purpose of this paper represents the foundation of a score function, effective in the forecast of bankruptcy risk for companies in the Romanian economy. In order to achieve bankrupt / non-bankrupt discrimination in the econometric model, we have used relevant indicators regarding liquidity,...

The purpose of this paper is to use discriminant analysis to substantiate a score function effective in bankruptcy risk prediction of enterprises on Romanian economy example. For achieving discrimination between bankrupt and non-bankrupt in the scoring model we used relevant financial ratios...