In the face of rising defaults and limited studies on the prediction of financial distress in Morocco, this article aims to determine the most relevant predictors of financial distress and identify its optimal prediction models in a normal Moroccan economic context over two years. To achieve...

I develop a hybrid methodology that incorporates an econometric identification strategy into artificial neural networks when studying conditional latent factor models. The time-varying betas are assumed to be unknown functions of numerous firm characteristics, and the statistical factors are...