Andreas Charitou

TL;DR: In this paper, the authors examined the incremental information content of operating cash flows in predicting financial distress and thus developed reliable failure prediction models for UK public industrial firms, which can be used to assist investors, creditors, managers, auditors and regulatory agencies in the UK to predict the probability of business failure.

TL;DR: In this article, the authors examined the earnings behavior of managers during the distressed period by looking at sources of abnormal accruals prior to the bankruptcy-filing year and found that managers of highly distressed firms shift earnings downwards prior to bankruptcy filing.

TL;DR: In this article, the predictive performance of three neural network methods, namely the learning vector quantization, the radial basis function, and the feed forward network that uses the conjugate gradient optimization algorithm, with the performance of the logistic regression and the backpropagation algorithm, were compared to a dataset of 139 matched-pairs of bankrupt and nonbankrupt US firms for the period 1983-1994.

TL;DR: This paper examined the relative information content of earnings and cash flows for security returns using a methodology incorporating contextual factors which may affect earnings and Cash Flow response coefficients, finding evidence that the earnings coefficient is related to earnings permanence, growth and firm size and that the cash flow coefficient may be related to growth.

TL;DR: In this paper, the authors extend the growing empirical literature on the association of earnings and cash flows with security returns by using a Japanese dataset consisting of 6,662 firm-year observations for the period 1984-93.