You need to write a literature review/critique for the following topic. Financial statement analysis has long been a major instrument to predict the probability of bankruptcy of firms.
However, significant corporate scandals have revealed that financial statements are not reliable to estimate the firm's default (bankruptcy) risk.
Recent literature finds that the non-financial information and other financial information (nonconventional financial ratios) are significant indicators of firm performance indicating that they convey additional relevant information over accounting ratios and stock price information. Among many, the following two factors are highlighted in recent literature.
A) How the corporate governance affects the corporate bankruptcy risk.
B) How the tax avoidance activities (tax sheltering or tax planning) affect the corporate bankruptcy risk.
Your group MUST choose one of the scopes, either A) or B). Find relevant literature (minimum 10 journal articles) on your choice of the topic (A or B), and carry out the literature review.