Article history: Received 13 August 2010 Received in revised form 12 July 2012 Accepted 17 July 2012 Available online 23 July 2012 We use data from the US airline industry to investigate whether firms that are under bankruptcy protection, as well as these firm's product market rivals, change the quality of the products they offer. We measure the quality of the services offered by a carrier usin...

A personal bankruptcy prediction system running on credit card data is proposed. Personal bankruptcy, which usually results in significant losses to creditors, is a rapidly increasing yet little understood phenomenon. The most commonly used methods in personal bankruptcy prediction are credit scoring models. Some data mining models have also been investigated in this domain. Neither the scoring...

Many static neural networks have been studied extensively in financial classification problems. However, dynamic time series predictive classification using neural networks with memory, such as the Gamma Memory neural network (GMNN), may prove more accurate. In this study we compare the predictive accuracy of the GMNN to the Multilayer Perceptron neural network and the statistical approaches of...

Bankruptcy prediction is of great importance in financial statement analysis to minimize the risk of decision strategies. It attempts to separate distress companies from healthy ones according to some financial indicators. Since the real data usually contains irrelevant, redundant and correlated variables, it is necessary to reduce the dimensionality before performing the prediction. In this pa...

We analyze the interaction of firm product quality and pricing decisions with financial distress and bankruptcy in the airline industry. We consider an airline’s choices of quality and price as dynamic decisions that trade off current cash flows for future revenue. We examine how airline mishandled baggage, on-time performance and pricing are related to financial distress and bankruptcy, contro...

Using quarterly data on personal consumer bankruptcy for 1989:Q4 through 1998:Q1, this study examines the impact that the introduction of casino gambling has on per capita personal bankruptcy filings. Eight jurisdictions that have recently adopted gambling are compared with a set of matching control jurisdictions, communities without casinos that are economically and demographically similar to ...

By compiling a novel dataset from bankruptcy court dockets recorded in Delaware between 2001 and 2002, we build and estimate a structural model of Chapter 13 bankruptcy. This allows us to quantify how key debtor characteristics, including whether they are experiencing bankruptcy for the …rst time, their past due secured debt at the time of …ling, and income in excess of that required for basic ...

This paper examines the implicit health insurance that households receive from the ability to declare bankruptcy. Exploiting multiple sources of variation in asset exemption law, I show that uninsured households with a greater financial cost of bankruptcy make higher out-of-pocket medical payments, conditional on the amount of care received. In turn, I find that households with greater wealth a...

SHOULD THERE BE a sovereign bankruptcy procedure for countries in financial distress? This paper explores the use of U.S. bankruptcy law as a model for a sovereign bankruptcy procedure and asks whether adoption of such a procedure would lead to a more orderly process of sovereign debt restructuring. It assumes that a quick and orderly debt restructuring process is more efficient than a prolonge...