The importance of bankruptcy prediction caused to create abundant models in this field. Selecting the best model seemed an essential affair due to diversified models of bankruptcy prediction. So comparisons of frequency were performed between the models of bankruptcy prediction, but most of them have investigated model accuracy. In the recent years other dimensions of the models have been studied as well. One of these dimensions is additional information or the same explanatory power of models that its shortage is felt in Iran. In this research the explanatory power of models was studied using the two hazard models (Shumway, 2001; Campbell et al, 2008) and an accounting model (Pourheydari and Koupayei Haji, 2010). For this purpose, information content test was used following Hillegeist et al, (2004) in the form of discrete risk model. The statistical sample of research was 242 companies which were admitted in Tehran Stock Exchange between 2004 and 2014. The results indicate that the hazard models are superior to accounting approach in the dimension of explanatory power and in fact they present more information compared to accounting approach.
Salehi, N., & Azimi Yancheshmeh, M. (2016). Comparison of Accounting Approach with Hazard Models in Dimension of Explanatory Power for Bankruptcy Prediction. Applied Research in Financial Reporting, 4(2), 125-144.
MLA
Nazanin Salehi; Majid Azimi Yancheshmeh. "Comparison of Accounting Approach with Hazard Models in Dimension of Explanatory Power for Bankruptcy Prediction". Applied Research in Financial Reporting, 4, 2, 2016, 125-144.
HARVARD
Salehi, N., Azimi Yancheshmeh, M. (2016). 'Comparison of Accounting Approach with Hazard Models in Dimension of Explanatory Power for Bankruptcy Prediction', Applied Research in Financial Reporting, 4(2), pp. 125-144.
VANCOUVER
Salehi, N., Azimi Yancheshmeh, M. Comparison of Accounting Approach with Hazard Models in Dimension of Explanatory Power for Bankruptcy Prediction. Applied Research in Financial Reporting, 2016; 4(2): 125-144.
