Corporate A/G Research Extension SEC public-company structural distress study

Document · Phase 19 Decision

Phase 19 Decision Note

Integrated two-label decision across the five Phase-19 hardening tracks (anchor refresh, sector stratification, calibration policy, baseline comparison, divergence anchor) plus the corporate folder freeze.

Summary

Phase 19 ran five hardening tracks against the locked Phase-18 result. Four tracks confirmed or refined the finding; one — the baseline comparison — produced an uncomfortable result: two single primitives slightly outperform the A/G composite on AUROC. The honest Phase-19 summary preserves the corporate signal’s legitimacy but downgrades the strongest version of the composite-vs-primitives claim.

The five hardening tracks

1. Anchor refresh (out-of-time)

A bounded EDGAR FTS refresh from 2026-01-01 → today found 6 new high-confidence Item-1.03 anchors; 5 of 6 are already in the Phase-18 panel. The 22-row out-of-time descriptive check is consistent with Phase 18 in direction (mean percentile 56–62 for structural distress) but is too small to support a statistical claim. Full writeup: Anchor Refresh Note.

2. Sector stratification

Pooled AUROC 0.711 is broadly distributed across the reliable SIC divisions (Manufacturing-2 0.729, Wholesale/Retail 0.742, Manufacturing-3 0.639). The Manufacturing-3 (durables / electronics) cell is meaningfully weaker than the pooled headline. Smaller cells are flagged DESCRIPTIVE_ONLY or NO_STRONG_CLAIM. Full writeup: Sector Analysis.

3. Calibration / monitoring bands

Predeclared (not tuned) quantile bands on the structural-distress test-fold distribution. The Watch band (80–95th percentile) is the most informative tier (event rate 3.1%, lift 2.6×, recall 39%). The top-1% Critical band shows a tail dropoff (event rate 0.4%, lift 0.37×) and is noise-prone. Full writeup: Calibration Policy.

4. Baseline comparison (uncomfortable)

Two single-primitive baselines slightly outperform the A/G composite on AUROC: operating cash flow / assets 0.736, interest coverage 0.726, vs structural distress 0.711. The composite’s value is robustness and regime separation, not maximum raw discrimination.

Full writeup: Baseline Comparison.

5. Divergence-anchor study

Within the divergence-state cohort (firm-years where A > 0 and G < 0), the canonical R / divergence geometry posts AUROC 0.705 — beating structural distress (0.666) and joint-collapse severity (0.468 chance) for future structural deterioration. This is first internal evidence that canonical R behaves as predicted for its intended divergence / masking regime. The anchor is internal future-state, not external. Full writeup: Divergence-Anchor Study.

Two-label decision

Process label
PARTIAL: Phase 19 completed but baseline/sector results weakened the claim
Scientific verdict
corporate signal survives but is weaker than simple baselines

Why "PARTIAL" and not "ADVANCED"

What stays locked

Recommended next focus

Higher-ed Task #15 (A-layer + multi-year panel + closure / HCM anchor join). Higher-ed is at the "Phase 11 / 12 corporate" stage; one more higher-ed step adds more scientific evidence than one more corporate Phase-20 step. If a corporate Phase 20 is later required, the highest-marginal-value candidate is external divergence-anchor validation.

Source basis: this is a public summary of CORPORATE_PHASE19_DECISION_NOTE.md in the project repository.

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