This study presents a financial distress (FD) prediction model that utilizes accounting, market-based, and financial reporting quality (FRQ) measures. We use a panel logit framework to analyze data for developed market firms from the UK and emerging market firms from Pakistan during the period 2001-2015. Obscured portions of financial reports, such as that created by management tactics employing income smoothing, can be measured with FRQ proxies. Our results find that such FRQ measures have significant influence on the accuracy of distress prediction modeling, in both the UK and Pakistani markets. Further, we validate the performance of our models through a fully non-linear classifier known as random forest methodology. Our robustness checks reveal that the predictive accuracy of our model remains high during different tranches of the business cycle and across different econometric techniques.

这项研究提出了一种财务困境（FD）预测模型，该模型利用了会计，基于市场和财务报告质量（FRQ）的度量。我们使用面板logit框架来分析2001-2015年期间来自英国的发达市场公司和来自巴基斯坦的新兴市场公司的数据。财务报表的模糊部分，例如采用收入平滑的管理策略所创建的部分，可以使用FRQ代理进行度量。我们的结果发现，在英国和巴基斯坦市场上，此类FRQ措施对遇险预测建模的准确性都有重要影响。此外，我们通过称为随机森林方法的完全非线性分类器验证了模型的性能。