The role of text information in corporate financial distress prediction models ? country-specific and industry-specific approaches
Provider: Grantová agentura ČR
Programme: Standardní projekty (řešení od 1.2.2013)
Implementation period: 01.02.13 - 31.12.15
Workplace:
Fakulta ekonomicko-správní - Ústav systémov.inženýrství a informatik
Investigator: Hájek PetrTeam member: Myšková Renáta
Description:
Corporate financial distress prediction models are recognized as important early warning systems for corporate stakeholders. Most research to date has focused on the use of financial ratios as determinants of corporate financial distress, whereas little attention has been given to the role of qualitative information hidden in reports and news databases. Our objective is to test the following hypotheses: (1) the use of qualitative text information results in significantly more accurate corporate financial distress prediction models, and (2) the effect of qualitative information differs across countries and industries. Even if this work does not support these hypotheses, the understanding of the role of text information in corporate financial distress prediction will be greatly increased. This study is unique in that it will combine quantitative financial ratios with qualitative information related to a company in prediction models, allowing quantitative-qualitative relations explicitly coupled to individual countries and industries.
Corporate financial distress prediction models are recognized as important early warning systems for corporate stakeholders. Most research to date has focused on the use of financial ratios as determinants of corporate financial distress, whereas little attention has been given to the role of qualitative information hidden in reports and news databases. Our objective is to test the following hypotheses: (1) the use of qualitative text information results in significantly more accurate corporate financial distress prediction models, and (2) the effect of qualitative information differs across countries and industries. Even if this work does not support these hypotheses, the understanding of the role of text information in corporate financial distress prediction will be greatly increased. This study is unique in that it will combine quantitative financial ratios with qualitative information related to a company in prediction models, allowing quantitative-qualitative relations explicitly coupled to individual countries and industries.
