Issue Information

• Published date: 01 October 2019
• Date: 01 October 2019
• DOI: http://doi.org/10.1002/jcaf.22356

VOLUME 30, NUMBER 4 •October 2019

Blind Peer Reviews

7The U.S. Dollar index cycle: Depreciation coming?

Damir Tokic

The recent U.S. Dollar Index countertrend rally will likely reverse to the longer‐term

downtrend due to: (a) narrowing interest rate differentials, (b) rising U.S. budget deficit, and

(c) the geopolitical trend of dedollarization.

11 Disclosure characteristics of firms being investigated by the SEC

Christopher J. Demaline

The purpose of this study is to explore the characteristics of managers' 10‐K disclosures

concerning U.S. Securities and Exchange Commission (SEC) investigations. This study

examined the quantitative linguistic characteristics of 171 company disclosures discussing

the firms' involvement in an SEC investigation related to fraudulent financial reporting. The

results suggest that these disclosures have a relatively negative sentiment and were relatively

difficult to read. The results failed to provide sufficient statistical evidence to support the

notion that managers systematically attempt to blame external parties for the potential

wrongdoing and related investigation. The study results add to the stream of research related

to impression management in corporate disclosures while also supplementing research on

how companies respond to negative events such as regulatory investigations. This study may

be of interest to financial regulators, investors, and accounting standards setters, all of whom

are interested in maximizing the usefulness of financial information.

25 Asset restructuring performance prediction for failure firms

Hui Li, Qian‐Xia Chen, Lu‐Yao Hong, and Qing Zhou

This study aims to forecast asset restructuring performance for failing public firms and to test

the effectiveness of different strategies of assets restructuring by using ten models, including:

standalone models of multivariate discriminant analysis (MDA), logistic regression (Logit),

probit, case‐based reasoning (CBR), support vector machine (SVM), and their bagged

ensembles. Moreover, this study proposes a knowledge base by collecting positive and