It is widely believed that the whole economic system has exhibited an increasingly intertwined nature in the context of economic globalization and regional integration. With the increasing interactions among trading partners in a supply network, bankruptcy of a member firm may make others get into distressed situations. This kind of phenomena is called bankruptcy diffusion or bankruptcy contagi...

Thousands of U.S. households filed for bankruptcy just before the bankruptcy law changed in 2005. That rush-to-file was more pronounced, we find, in states with more generous bankruptcy exemptions and lower credit scores. We take that finding as evidence that the new law effectively reduces exemptions, which in turn should reduce the “demand” for bankruptcy and the resulting losses to suppliers...

We have conducted an agent-based simulation of chain bankruptcy. The propagation of credit risk on a network, i.e., chain bankruptcy, is the key to understanding largesized bankruptcies. In our model, decrease of revenue by the loss of accounts payable is modeled by an interaction term, and bankruptcy is defined as a capital deficit. Model parameters were estimated using financial data for 1,07...

Qualitative bankruptcy prediction rules represent experts' problem-solving knowledge to predict qualitative bankruptcy. The objective of this research is predicting qualitative bankruptcy using antminer algorithm. Qualitative data are subjective and more difficult to measure. This approach uses qualitative risk factors which include fourteen internal risk factors and sixty eight external risk f...

BACKGROUND There has been significant attention paid in recent years to the economic costs of health service provision for people with palliative care needs. However, little is known about the costs incurred by family caregivers who typically provide the bulk of care for people at the end of life. AIM To explore the nature and range of financial costs incurred by family caregiving within a pa...

This article studies the design and valuation of debt contracts in a general dynamic setting under uncertainty. We incorporate some insights of the recent corporate finance literature into a valuation framework. The basic framework is an extensive form game determined by the terms of a debt contract and applicable bankruptcy laws. Debtholders and equityholders behave noncooperatively. The firm’...

In this paper, we apply the CART ,C5.0 , GP decision tree classifiers and compares with logic model and ANN model for Taiwan listed electronic companies bankruptcy prediction. Results reveal that the GP decision tree can outperform all the classifiers either in overall percentage of correct or k-fold cross validation test in out sample. That is to say, GP decision tree model have the highest ac...

Economic variables move asymmetrically over the business cycle: quickly during crises but slowly during recoveries. I show that this asymmetry is stronger in countries with less developed financial systems and greater financial frictions. Then I explain this fact using a learning model with endogenous information about economic conditions. Financial frictions, which I capture by higher bankrupt...

We consider project financing under adverse selection and moral hazard and derive several interesting results. First, we provide an explanation of why good firms issue both debt and underpriced equity (even if the bankruptcy and agency costs of debt are zero). Second, we show that, in the presence of moral hazard, adverse selection may induce the conversion of negative into positive NPV project...