Naslov
Does hedge accounting contribute to reducing accounting information assymmetry and Z-score bias?

Autori
Mrša, Josipa ; Serdarević, Nino

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
10th International Conference Economic Integrations, Competition and Cooperation "Accession of the Western Balkan Region to the European Union" : proceedings = Intégrations économiques, concurrence et cooperation : "adhésion des régions des Balkans occidentaux à l’Union européenne" : procedures / Kandžija, Vinko ; Kumar Andrej - Nica : CEMAFI International, 2016, 470-486

ISBN
978-2-9544508-9-6

Skup
10th International Conference Economic Integrations, Competition and Cooperation "Accession of the Western Balkan Region to the European Union" (10 ; 2015)

Mjesto i datum
Opatija, Hrvatska, 22.04.2015. - 24.04.2015

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
accounting information asymmetry ; bankruptcy prediction ; financial reporting quality ; hedge accounting

Sažetak
The bankruptcy prediction models development presented one of most exciting topics for accounting researchers across the globe for the past five decades. In recent period, and especially during the financial crises, research community has even intensified efforts in looking for the applicable model that will, perceiving statistically acceptable tolerable error enable reliable prediction of firms’ bankruptcy probability. The stake in succeeding having developed model, and that (disregarding economy specifics) predicts universally the bankruptcy probability with sufficiently high precision, is enormously high. It directly implies drastic fall in transactions costs between borrowers and lenders, reliable and affordable risk assessment analysis and more optimistic capital flow. This article conceptualizes explanatory notes on bias, evidenced in legitimate research studies on bankruptcy prediction models, constructed of various financial ratios. We argue that the level of discretion over financial reporting considerably influences financial figures and, correspondingly, errors in bankruptcy models application. We assume that discretion directly correlates to type I error (no bankruptcy for bankrupt firms) and, thereafter, construct relationship of hedge accounting inefficacy to type I error results exposure.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA