Firm financial distress factor analysis

This study sets out to examine three issues: whether financially distressed firms are more likely to manipulate their earnings, whether the board of directors of these firms has a low level of independence, and whether the opinion of their auditors reflects the possibility of financial distress. This study uses a dataset of listed firms and de-listed firms from 1997 to 2007 to examine various factors and conditions before a firm´s financial distress, including the variables of earnings management, corporate governance, and audit opinions.