The U.S. personal bankruptcy system functions as a bankruptcy system for small businesses as well as consumers, because debts of noncorporate firms are personal liabilities of the firms’ owners. If the firm fails, the owner has an incentive to file for bankruptcy, since both business debts and the owner’s personal debts will be discharged. In bankruptcy, the owner must give up assets above a fi...

We develop a framework to simultaneously compute the unobservable parameters underlying structural-parametric models for bankruptcy prediction. More specifically, we such as, asset value and volatility, through learning by embedding in structural neural network that maps network’s input space (e.g. companies’ observable financial market data) parameter space. Within ‘neuro-structural’ framework...

This paper seeks to explore the application of Altman’s bankruptcy prediction model in the construction industry by measuring its percentage accuracy on a dataset consisting of 108 bankrupt and non-bankrupt firms selected across the timeline of 1985-2013. The main goal of this paper is to explore the predictive power of an expanded variable set tailored to the construction industry compared to ...