This paper examines the relationship between debt contract and the process of resolving financial distress, through either debt restructuring or bankruptcy procedure. It effectively justifies the popularity of the standard debt contract by demonstrating that the standard debt contract is the optimal debt contract for small business with the costly random verification scheme. Although this resul...

Closely related to financial risk assessment, one of the main concerns of the organizations should be the evaluation of bankruptcy risk, in this period of slow economic growth. Organization bankruptcies have increased in recent years worldwide. The aim of this paper is to demonstrate that the methods and models for forecasting bankruptcy of organizations, for the bankruptcy risk assessment are ...

Consumer debt and bankruptcy are central issues today because of their explosive trends over the last 20 years in the U.S. economy. However, there is no convincing explanation for these facts. A drop in information costs, a potential cause, has not been evaluated mainly because there is no quantitative theory of consumer debt and bankruptcy where the cost of information plays an important role....

0950-7051/$ see front matter 2011 Elsevier B.V. A doi:10.1016/j.knosys.2011.06.008 ⇑ Corresponding author at: Key Laboratory of Knowledge Engineering of Ministry of Education, 130012, China. E-mail addresses: [email protected], liudayou19420 Bankruptcy prediction is one of the most important issues in financial decision-making. Constructing effective corporate bankruptcy prediction models in tim...

In this research, the relationship between accruals quality and bankruptcy of companies has been studied. According to Dechow et al.chr('39')s (1995) model, the quality of accruals was measured, and according to the Shirata model (1998), bankruptcy was examined. Operations were considered as the control variables. The research hypothesis was tested using a multivariate regression model and a co...

After the promulgation of Law Number 11 2020 Concerning Job Creation, it has been made possible to form a new legal entity, namely an Individual Company. These changes are referred in provisions Article 109 Creation Law, which contains several 40 2007 concerning Limited Liability Companies. The government also further regulations regarding existence individual company as entity Government Regul...

bankruptcy and tort; two apparently distinct branches of law, but, in fact, some technical and theoretical issues arise from their interaction. these include, among others, the boundaries between personal rights of the victim to damages, exclusively allocated to the bankrupt, and the financial damages , which belong to the creditors ; the problems resulting from the chronological order of the b...

Data envelopment analysis (DEA) is an effective tool for supporting decision-makers to assess bankruptcy, uncertainty concepts including intervals, and game theory. The bankruptcy problem with the qualitative parameters is an economic problem under uncertainty. Accordingly, we combine the concepts of the DEA game theory and uncertain models as interval linear programming (ILP), which can be app...

We argue that the main role of corporate bankruptcy is to mitigate bargaining frictions in financial distress. Bankruptcy law can improve ex post bargaining efficiency by (1) verifying assets and liabilities; (2) improving coordination among claimholders; (3) protecting third-party claimants; (4) maintaining asset value during bargaining; and (5) alleviating the impact of liquidity constraints ...