Actions by Trustees in Bankruptcy

OPTION-BASED BANKRUPTCY PREDICTION by

This study builds on option-pricing theory to explain business bankruptcy based on a sample of 139 matched pairs of bankrupt and control U.S. firms for the period 1983-94. Our results indicate that the primary option-motivated variables, such as firm volatility, play an important role in predicting default, one, two and three years prior to bankruptcy. When the model is extended to account for ...

Fair Tracing without Trustees

The Prediction Model for Bankruptcy Risk by Bayesian Method

The importance of predicting bankruptcy risk of firms is increasing because of later financial crisis. Despite practical researchers trying to present models for predicting this risk, it seems that an optimum and acceptable model that is reliable for financial statement users and auditors in order to increase their ability in decision making and professional judgment has not been presented yet....

Bankruptcy Prediction by Generalized Additive Models

We compare several accounting based models for bankruptcy prediction. The models are developed and tested on large data sets containing annual financial statements for Norwegian limited liability firms. Out-of-sample and out-of-time validation shows that generalized additive models significantly outperform popular models like linear discriminant analysis, generalized linear models and neural ne...

Reputation-aware task allocation for human trustees

Compared to automated entities, human trustees have two distinct characteristics: 1) they are resource constrained (with limited time and effort to serve requests), and 2) their utility is not linearly related to income. Existing research in reputation-aware task delegation did not consider these two issues together. This limits their effectiveness in humanagent collectives such as crowdsourcin...