News may be a news article or an appetiser offering quick insight into one of Danmarks Nationalbank’s more extensive publications. The series is targeted at people who need an easy overview and like a clear angle.

Financial stability and financial risks

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

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.