This paper develops an adaptive ensemble model for bankruptcy classification of firms cited in the SEC's Accounting and Auditing Enforcement Releases (AAER). We develop a Genetic Algorithm (GA) model for bankruptcy classification of AAER firms. Our research contributes to the bankruptcy...

This paper predates the Sarbanes-Oxley Act of 2002 (Section 704: Study of Enforcement Actions) by six years. We used seven red flags which are composed of four financial red flags and three non-financial turnover red flags in order to predict the targets of the SEC's investigation of fraudulent...

The SEC mandates firms to inform investors about their assessment of future contingencies in their 10 Ks. However lengthy and complex disclosures – mostly for dozens of firms in an investor’s portfolio – can barely be processed by a human being. To cope with the flood of information, we...

We examined the association between financial disclosure and Net Interest Costs (NIC) in terms of finance studies that have suggested that the municipal bond market is segmented. Our results indicate that financial reporting measures are more strongly associated with NIC in the regional primary...

Timing of Disclosure for Financial Statements in Germany after the 2007 EHUG Act: The paper analyses the timing of disclosing financial statements for small and medium enterprises (SME) in Germany in 2007 and 2008. Comparisons of different regional areas and different company sizes are made and...

The paper shows the ways of disclosing financial risks by IFRS 7 and certain types of sensitivity analysis. The different possibilities of preparing a sensitivity analysis, such as value at risk are illustrated and their suitability for reporting are faced critically. Following, the manner of...

The paper analyses a strategy for avoiding the disclosure of the financial statements of a limited partnership with a limited liability company as general partner (GmbH & Co. KG) according to German Commercial Code (HGB). It describes the formal process of the joining of a natural person as an...

The Financial Reporting Enforcement Panel (FREP) has been examining financial reporting of companies listed in the regulated market in Germany since 1.7.2005. The paper analyzes the enforcement disclosure quality between 2006 and 2008 by comparing the published activity reports of the panel with...

The paper analyses the different accounting methods for strategic investments in separate financial statements according to IFRS. Furthermore it compares the accounting methods according to international standards with German GAAP, including the statements of the German professional institute of...