We describe and contrast three different measures of an institution’s credit risk. “Insolvency risk” is the conditional probability of default due to deterioration of asset quality if there is no run by short term creditors. “Total credit risk” is the unconditional probability of default, either because of a (short term) creditor run or (long run) asset insolvency. “Illiquidity risk”is the diff...

We present a model of the propagation process of bank runs. A bank failure alone is not sufficient to trigger a panic. In accord with the empirical evidence, runs become contagious only during periods of macroeconomic instability. In addition, we make a clear distinction between illiquidity and insolvency as possible causes of bank failures. We also show that, despite the possibility of runs, t...

Increasing network intrusion becoming crucial problem in security infrastructures. Data mining techniques have been successfully applied in many different fields including insolvency prediction, churn prediction, marketing, process control, fraud detection, and network management. Today number of research projects is using data mining for intrusion detection system (IDS) and prevention. The goa...

The Brazilian Bankruptcy Law—Law No. 11,101 of 2005 (“BBL”)—has just celebrated its 10th anniversary.2 It replaced the outdated bankruptcy law that had been in force since 1945. The BBL promoted a major overhaul of the Brazilian corporate insolvency system. It ultimately shifted from a liquidation-oriented and outdated legislation to embrace modern principles of corporate restructuring designed...

Non-parametric estimation for a linear regression model under random double-truncation is investigated, i.e. the variables are observed if and only dependent variable lies in interval. The method requires weak distribution assumptions to ensure identifiability, but does not require any specific family variable, neither truncation nor error term. By using non-parametric estimators of several fun...

Abstract We present a dynamic, continuous-time model in which risk averse inside equityholders set bank’s lending, payout, and financing policies, the exposure of bank assets to crashes. examine whether bailouts encourage excessive lending taking compared liquidation or bail-ins with debt-to-equity conversion debt write-downs. The effects prevailing insolvency resolution mechanism (IRM) on prob...

The inclusion of a statutory moratorium has been consistent feature UK insolvency regimes, most recently with the introduction restructuring by Corporate Insolvency and Governance Act 2020. Despite overarching intentions promoting rescue company, moratoria can cause significant hindrances for those stakeholders seeking to exercise their proprietary or contractual rights such as retention title ...

In the context of economic globalization, competition among enterprises is becoming increasingly fierce. Once listed companies have problems such as deteriorating financial conditions and insolvency, they may fall into bankruptcy. Bankruptcy a market exit mechanism. Under economy, once an enterprise has insolvency other problems, it choose to apply for bankruptcy protect legitimate rights inter...

Studies on the characteristics of insolvent firms’ earnings management are critical, as ripple effects a firm’s opportunistic accounting and insolvency society can be widespread significant. This study divides dataset unlisted firms into four groups (large that have received external audits; small- medium-sized enterprises (SMEs) SMES did not receive private businesses audits) analyzes whether ...