The Roles of Accounting Valuations and Earnings Management in the Survivorship of Technology… DOI: http://dx.doi.org/10.5772/intechopen.85395

The key implications for investors, equity holders and creditors derived from our results and analyses are threefold. Firstly, the alignment of our results and underlying expectation that certain variables should demonstrate significant explanatory power at various times of crisis illustrates the strong relevance of contingency theory in evaluating the phenomenon of tech firms during periods of financial turmoil. Secondly, through our analysis of results, we reiterate that traditional relationships of accounting valuation and earnings management measures may not always hold especially during crisis periods. Thirdly, from a general perspective, the results indicate that the variables employed in this study demonstrate greater predictive power in determining the phenomena of future tech-firm failure than performance.
