Can texts in annual reports predict whether a firm will enter into distress?

News - January 2019 - No. 1

Authors Danmarks Nationalbank
Subject Risk management
Type News
Year 2019
Published 21 January 2019
Normally the numerical financial data of a firm is scrutinised when the soundness of the firm is assessed. But texts in the annual reports may also contain important information that can help to predict distress events.