Predicting Corporate Failure in the UK: A Multidimensional Scaling Approach

Neophytou, Evridiki; Molinero, Cecilio Mar

doi:10.1111/j.0306-686x.2004.00553.x

Cited by 79 publications

(58 citation statements)

References 43 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Excluding distressed firms biases the procedure in favour of finding the hypothesised result of dif ferences between failed and continuing firms, especially if a number of continuing firms face financial problems, as happens in the UK (Neophytou and Mar Molinero, 2004 and Jiambalvo (1994). The Jones model uses the unexplained part of a regression of total accruals on the change in revenue and gross property, plant and equipment as a proxy for abnormal accruals.…”

Section: Measurement Of Accounting Accruals Manipulationmentioning

confidence: 99%

Earnings quality in ex‐post failed firms

Lara

Osma²,

Neophytou

2009

Accounting and Business Research

Self Cite

View full text Add to dashboard Cite

Abstract-This paper analyses earnings quality in ex-post failed firms. Using a lar ge sample of UK bankrupt firms, we find that failed firms manage earnings upwards in the four years prior to failure. This manipulation is achieved in two ways: (1) through accounting (accruals) manipulation; and (2) by implementing real operating actions that deviate from normal practice. We show that these two types of manipulation lead to reduced earnings reliability . We use conditional conservatism as a proxy for reliability , as prior literature links conditional accounting conservatism to better governance and positive economic outcomes. Our results show that conditional conservatism decreases substantially in the years prior to failure. Finally, we show that accruals manipulation is more pronounced in ex-post bankrupt firms with low ex-ante probability of failure, and that ex-post bankrupt firms with high ex-ante failure probability, having likely exhausted the opportunities for accrual manipulation, manipulate real operations more aggressively.

show abstract

Section: Measurement Of Accounting Accruals Manipulationmentioning

confidence: 99%

Earnings quality in ex‐post failed firms

Lara

Osma²,

Neophytou

2009

Accounting and Business Research

Self Cite

View full text Add to dashboard Cite

show abstract

“…A 43 x 43 proximity matrix of the distances between competencies was generated using the RR measure of similarity. Next, following the published research of others (Chipulu, Neoh, Ojiako, & Williams, 2013;Kruskal & Wish, 1978;Neophytou & Mar Molinero, 2004), we used the intuitive approach of observing stress values to aid in the determination of dimensionality. The 43 x 43 proximity matrix was used as the input to the MDS model (Proxscal algorithm).…”

Section: Quantitative Data Analysis: Extraction Of Competency Dimensionmentioning

confidence: 99%

Preferred Job Competencies of Engineering Leaders in DoD

Clardy¹,

Sarkani²,

Mazzuchi³

2017

Defense ARJ

View full text Add to dashboard Cite

“…1997-2010. 9 A firm is considered failed in this research if the reason for the cancellation of its listing was its entry into receivership, administration, or liquidation, consistent with the definition adopted by Peel and Peel (1988) and Neophytou and Molinero (2004).…”

Section: Sample Selectionmentioning

confidence: 99%

Audit committees, non-audit services, and auditor reporting decisions prior to failure

Hsu

Haslam

2016

The British Accounting Review

View full text Add to dashboard Cite

Use policyThe full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that:• a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.Please consult the full DRO policy for further details. AbstractThis study investigates the associations between audit committee characteristics and the likelihood of auditors' going-concern decisions among UK failed firms. Specifically, we examine whether the threat posed by auditor-provided non-audit services (NAS) to auditors' reporting decisions is mediated by audit committee characteristics. We find that failed firms with higher proportions of independent non-executive directors (NEDs) and financial experts on the audit committee are more likely to receive auditor going-concern modifications prior to failure, but that there is no significant relationship between NAS fees and the likelihood of receiving a going-concern modification. The evidence further suggests that the association between NAS and auditors' reporting decisions is subject to audit committee characteristics.Where the audit committee is more independent and includes a greater proportion of financial experts, auditors providing the client with NAS are less likely to issue a standard unmodified going-concern report prior to failure. Overall, the findings provide support for corporate

show abstract

Predicting Corporate Failure in the UK: A Multidimensional Scaling Approach

Abstract: ABSTRACT

Cited by 79 publications

References 43 publications

Earnings quality in ex‐post failed firms

Earnings quality in ex‐post failed firms

Preferred Job Competencies of Engineering Leaders in DoD

Audit committees, non-audit services, and auditor reporting decisions prior to failure

Contact Info

Product

Resources

About