I develop and estimate a model of cash auction bankruptcy using data on 205 Swedish Þrms. The results challenge arguments that cash auctions, as compared to reorganizations, are immune to conßicts of interest between claimholders but lead to inefficient liquidations. I show that a sale of the assets back to incumbent management is a common bankruptcy outcome. Salebacks are more likely when they...

This paper investigates the forecasting accuracy of bankruptcy hazard rate models for U.S. companies over the time period 1962–1999 using both yearly and monthly observation intervals. The contribution of this paper is multiple-fold. One, using an expanded bankruptcy database we validate the superior forecasting performance of Shumway’s (2001) model as opposed to Altman (1968) and Zmijewski (19...

The paper discusses bankruptcy prediction model in the UK during the two last decades. My study is provided to support that the Original Altman’s Z-score (1968) might not valid to predict bankruptcy since the business environment changed a lot. However, there are many firms go to bankrupt recently and there is a need to study and improve the bankruptcy predictive ability. And the result shows t...

Bankruptcy prediction is very important for all the organization since it affects the economy and rise many social problems with high costs. There are large number of techniques have been developed to predict the bankruptcy, which helps the decision makers such as investors and financial analysts. One of the bankruptcy prediction models is the hybrid model using Fuzzy C-means clustering and MAR...

This paper aims to contribute to the growing literature on the causes of consumer bankruptcy. It presents the consumer bankruptcy decision as an irreversible choice that has an embedded real option value. This allows the use of a well known framework for the study of decision making under uncertainty. The principal empirical finding is that cross-sectional variances of economic factors, such as...

Today in every organization financial analysis provides the basis for understanding and evaluating the results of business operations and delivering how well a business is doing. This means that the organizations can control the operational activities primarily related to corporate finance. One way that doing this is by analysis of bankruptcy prediction. This paper develops an ontological model...