In this study the factors behind the decision‐makers’ erroneous judgements regarding failure prediction (classification of firms as bankrupt and non‐bankrupt) are analysed. The purpose is to find out the factors causing incorrect responses, i.e. the cases in which the decision‐maker is...

Purpose – The paper seeks to introduce a method based on the Markowitz mean‐variance portfolio approach to outline a theory of future firm, its environment, and management accounting systems (MASs). The approach is based on the target to choose propositions for the theory to maximise...

Purpose: The purpose of this study is to analyze the business-failure-process risk from two perspectives. First, a simplified model of the loss-generation process in a failing firm is developed to show that the linear system embedded in accounting makes financial ratios to depend linearly on...

Purpose: The purpose of this paper is to analyze the relationships between different types of performance management system (PMS) and organizational performance. The main task is based on an empirical typology of PMS to show how the different types of PMS are related to organizational...

Purpose: The purpose of this paper is to find out whether the financial predictors of failure differ for exporting and non-exporting firms. Design: The study is based on two samples of French manufacturing micro firms from Amadeus database. Samples of 468 exporting and 1,148 non-exporting firms...

Purpose: The purpose of this paper is to use the logical chain of key factors (KFs) to explain the success of performance management systems (PMS) and corporate performance. Design/methodology/approach: The authors use the strength of the KFs chain to capture PMS success. First, the authors...

This paper presents a model for predicting crises in small businesses using early‐warning signals. It summarises the results of two separate studies carried out in Finland (with 72 per cent response) and the UK (26 per cent) on the decision process of corporate analysts (Finland) and bank...

This study considers the novel topic of comparing firm failure processes between different countries. For seventy bankrupt Finnish firms corresponding pairs are found among Estonian bankrupt firms based on industry, size and time of bankruptcy. Despite the similarity of firms from two countries,...