Cash Flow Information And The Prediction Of Financially Distressed Mining, Oil And Gas Firms: A Comparative Study

Abstract

This study tests whether cash flow information is more useful to creditors in predicting financially distressed mining, oil and gas firms than it is in predicting financial distress in other industries. The results of this study suggest that cash flows are more useful to creditors in predicting financially distressed mining, oil and gas firms than they are predicting financially distressed firms in other industries. Results also show that different cash flows are useful in predicting financial distressed mining, oil and gas firms than are useful in predicting financially distressed control firms.