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Wall Street Journal distress disclosures and bankruptcy research.

ABSTRACT

This study assesses the extent to which the Wall Street Journal (WSJ) is a useful and reliable source of distress disclosures for bankruptcy research. Prior accounting and finance studies document the importance of controlling for distress disclosures in bankruptcy research. These studies identify distress disclosures from numerous sources: 8-Ks, 10-Ks, NT10-Ks, LEXIS, annual reports, Moody's Industrial Manuals, the F&S Index of Corporate Changes, the Dow Jones News Service, and the WSJ. Some sources are costly (e.g., 8-Ks, 10-Ks, NT10-Ks, and the Dow Jones News Service), while other sources do not provide timely distress disclosures (e.g., LEXIS, annual reports, ...

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