Premises:

In this paper, we hypothesize that recessionary business cycles can contribute to corporate failure. Specifically, we test for a relationship between failure and (1) knowledge that failure occurred during a recession and (2) knowledge that the predictor variables were measured during a recession. We are able to show that accounting-based logistic regression models used to predict corporate failure are sensitive to the occurrence of a recession. Furthermore, our results indicate that such models are sensitive to knowledge that the predictor variables were generated during a recession and to knowledge that failure ultimately occurred during a recession. Copyright Blackwell Publishers Ltd 1998.

In this paper we examine whether the occurrence of recession-induced stress is an incrementally informative factor that contributes to the predictive and explanatory power of accounting-based failure prediction models. We show that accounting-based statistical models used to predict coiporate failure are sensitive to the occurrence of a recessioB, Moreover, after controlling for the intertemporally unconditioned "stressed" and "unstressed" types of corporate failure, we find that models conditioned on the occarrence of a recession still add incremental explanatory power in predicting the likelihood of corporate failure. This source-related characterization of stress appears distinct from other types of corporate failure that have been identified.Resume. Les auteurs se demandent si roccurrence du stress amen6 par la recession est un facteur qui apporte une information supplementaire contribuant au pouvoir predictif et explicatif des modeles de prevision des faillites reposant sur la comptabilite, Ils montrent que Ies modeles statistiques fondes sur la comptabilite utilises pour prevoir les faillites des entreprises sont sensibles a Foccurrence d'une recession, De plus, une fois controlee la nature de la faillite de I'entreprise -faillite annonc6e par le stress et faillite non annoncee par le stress sans conditionnement intertemporel -, les auteurs en viennent a la conclusion que les modeles conditionnes par roccurrence d'une recession ont encore un pouvoir explicatif accru daos la prediction de la probabilite de faillite de I'entreprise, Cette definition du stress liee a la source semble differente des autres types de faillite de I'entreprise qui ont • ete cemes.We report on an examination of whether the occurrence of a recession is an incrementally informative factor that can contribute to the predictive and explanatory power of standard accounting-based failure prediction models. Since Beaver's (1966) seminal study, a voluminous literature has documented that accounting-based statistical models can be used to predict corporate failare at rates significantly better than can be attributed to chance, i With few exceptions, however, previous research has not explored why failure occurs, why accounting data are associated with the corporate failure event, and under what contexts better statistical prediction is possible, Zavgren (1983) suggests

Voice intensity in 19 prospective cochlear implant candidates, all adventitiously profoundly sensorineurally deaf adult males, was investigated. For the first time with objective data, it was shown that such deaf subjects spoke with significantly increased voice intensity and with greater intensity fluctuations than normal hearing male speakers. Neither length of time of profound deafness nor history of hearing aid use significantly affected voice intensity. Based on quantitative data, rehabilitation of voice intensity problems in the adventitiously deaf is indicated.