Today in every organization financial analysis provides the basis for understanding and evaluating the results of business operations and delivering how well a business is doing. This means that the organizations can control the operational activities primarily related to corporate finance. One way that doing this is by analysis of bankruptcy prediction. This paper develops an ontological model...

This paper investigates the forecasting accuracy of bankruptcy hazard rate models for U.S. companies over the time period 1962–1999 using both yearly and monthly observation intervals. The contribution of this paper is multiple-fold. One, using an expanded bankruptcy database we validate the superior forecasting performance of Shumway’s (2001) model as opposed to Altman (1968) and Zmijewski (19...

The paper discusses bankruptcy prediction model in the UK during the two last decades. My study is provided to support that the Original Altman’s Z-score (1968) might not valid to predict bankruptcy since the business environment changed a lot. However, there are many firms go to bankrupt recently and there is a need to study and improve the bankruptcy predictive ability. And the result shows t...

Bankruptcy prediction is very important for all the organization since it affects the economy and rise many social problems with high costs. There are large number of techniques have been developed to predict the bankruptcy, which helps the decision makers such as investors and financial analysts. One of the bankruptcy prediction models is the hybrid model using Fuzzy C-means clustering and MAR...

I develop and estimate a model of cash auction bankruptcy using data on 205 Swedish Þrms. The results challenge arguments that cash auctions, as compared to reorganizations, are immune to conßicts of interest between claimholders but lead to inefficient liquidations. I show that a sale of the assets back to incumbent management is a common bankruptcy outcome. Salebacks are more likely when they...

The failure rate of Small and medium enterprises (SMEs), is high in Sweden. Around 6000 SMEs go into bankruptcy every year. This paper attempts to identify the main determinants that are perceived to have contribution to the failure of Swedish SMEs. The research is in principle based on the analysis of panel data matched sample consisting of 1991 bankrupted and 1991 nonbankrupted Swedish SMEs. ...

Malpractice insurance provides for payments to patients so that a physician need not compensate harmed patients from personal assets. The bankruptcy system also protects a debtor's assets from seizure by creditors. In this paper, we estimate the e ect of personal asset protection on physician practice decisions. Variation in bankruptcy law provides exogenous variation in risk to physician perso...

Fuzzy logic has been widely used in machinery, robotics, and industrial engineering. This chapter introduces the use of fuzzy logic for the needs of financial management. The process of globalization has led to the emergence of a complex network of relationships in the business environment. In a free market economy, this means increased complexity and uncertainty of factors affecting the financ...

We extend the contingent claims framework for the levered firm in explicitly modeling the resolution of financial distress under formal bankruptcy as a non-cooperative game between claimants under the supervision of the bankruptcy judge. The identity of the class of claimants proposing the first reorganization plan is found to be a key determinant of the likelihood of liquidation and of the ren...