Bankruptcy prediction has been addressed by many researchers in the field of finance since few decades. One of the best approaches to deal with this issue is considering it as a classification problem. In this paper a time series prediction model of bankruptcy via Adaptive neuro-fuzzy inference system (ANFIS) is formulated, which is capable of predicting the bankruptcy of a firm for any future ...

-Signs of a potential business bankruptcy are evident well before actual bankruptcy occurs. For managers, creditors, and all other concerned parties this lag allows time to take remedial action. Therefore, building models, which signal approaching financial failure, have been an important part of corporate finance literature, in order to help management refocus their energy, revaluate their cor...

During the 2008 financial crisis, general municipalities' across the United States began considering bankruptcy as a means for resolving systemic budget crises. This signified a substantial shift in the relationship between municipalities and Chapter 9 of the federal bankruptcy code. Until 2008, few general municipalities filed under Chapter 9. Special utility districts filed most Chapter 9 pet...

A much higher fraction of U.S. households would benefit financially from bankruptcy than actually file. While the current bankruptcy filing rate is about 1% of households each year, I calculate that at least 15% of households would benefit financially from filing and the actual figure would be several times higher if most households plan in advance for the possibility of filing. Two explanation...

The development of the Cyprus Stock Exchange together with the increasing trend of investors’ presence in financing activities has led to the importance of this market. In such circumstances, the first step towards a sustainable development of the Exchange is to support the investors. Risk of bankruptcy for the investee is a major challenge that an inexperienced stock investor encounters. In th...

A commonly held belief of game theorists is that the pre-nucleolus of the modest bankruptcy game is identical to the pre-nucleolus of its dual game, the greedy bankruptcy game. In this paper we provide some results that indicate that this belief is false. We establish some non-coincidence results of the pre-kernel and pre-nucleolus of the modest bankruptcy game with respect to the pre-kernel an...

We analyze the interaction of …rm product quality and pricing decisions with …nancial distress and bankruptcy in the airline industry. We consider an airline’s choice of quality and price as dynamic decisions that trade o¤ current cash ‡ows for future revenue. We examine how airline mishandled baggage, on-time performance and pricing are related to …nancial distress and bankruptcy, controlling ...

A link in production network is usually a creditordebtor relationship. If a firm goes into financial insolvency state or bankruptcy, then firms on its upstream can have secondary effect from the bankruptcy. By using the recent 10 years data of bankruptcy in japan, we show that these causes of “link effect” are by no means negligible. Indeed, nearly 20% of total debt (a few percent of GDP) is du...

Both bankruptcy regulation and redistributive taxation vary considerably across US states. We model the interactions between these two policies: redistributive taxation targets intratemporal inequality whereas asset exemptions in bankruptcy procedures help agents to smooth consumption across time. We derive sufficient conditions under which more redistributive taxation makes bankruptcy exemptio...

Because of the recent surge in U.S. personal defaults, Congress is currently debating bankruptcy reform legislation requiring a means test for Chapter 7 filers. This paper explores the effects of such a reform in a model where, in contrast to previous work, bankruptcy options and production are explicitly taken into account. Our findings indicate that means testing would not improve upon curren...