The bankruptcy prediction models have long been proposedas a key subject in finance. The present study, therefore, makes aneffort to examine the corporate bankruptcy prediction through employmentof the genetic algorithm model. Furthermore, it attempts to evaluatethe strategies to overcome the drawbacks of ordinary methods forbankruptcy prediction through application of genetic algorithms. Thesa...

In the last fifteen years or so, lawyers working in law and economics and economists with an interest in legal matters have turned their attention to the topic of bankruptcy. A large amount of work has resulted, both theoretical and empirical, some of which has been concerned with the functioning of existing bankruptcy procedures and some with bankruptcy reform. Although researchers in this are...

We model a network economy with three sectors: downstream firms, upstream firms, and banks. Agents are linked by productive and credit relationships so that the behavior of one agent influences the behavior of the others through network connections. Credit interlinkages among agents are a source of bankruptcy diffusion: in fact, failure of fulfilling debt commitments would lead to bankruptcy ch...

Introduction ........................................................................................230 I. Bankruptcy Filings of the Ill and Injured ................................233 A. Medical-Related Bankruptcy Generally ............................233 B. Medical-Related Chapter 13 Filings; The New Data ........237 II. A Traditional Analysis of the Medical-Related Chapter 13 Findings ........

Bankruptcy in the same amount of time and history is very rampant and therefore the vision of the future can be prevented. Using data envelopment analysis (DEA) and malmquist index can precise evaluating of the performances of many different kinds of decision making units (DMU) such as hospitals, universities, business firms, etc. In this paper, we will modify directional distance formulation o...

We investigate the relative importance of various bankruptcy predictors commonly used in the existing literature by applying a variable selection technique, the least absolute shrinkage and selection operator (LASSO), to a comprehensive bankruptcy database. Over the 1980 to 2009 period, LASSO admits the majority of Campbell, Hilscher, and Szilagyi’s (2008) predictive variables into the bankrupt...

The high social costs associated with bankruptcy have spurred searches for better theoretical understanding and prediction capability. In this paper, we investigate a hybrid approach to bankruptcy prediction, using a genetic programming algorithm to construct a bankruptcy prediction model with variables from a rough sets model derived in prior research. Both studies used data from 291 US public...

We analyse the redistribution of a resource amongst agents who have claims to the resource and who are ordered linearly. A well known example of this particular situation is the river sharing problem. We exploit the linear order of agents to transform the river sharing problem to a sequence of two-agent river sharing problems. These reduced problems are mathematically equivalent to bankruptcy p...

The literature presents a clear divide between the so called market and accounting based approaches to bankruptcy prediction. With this in mind, this paper employs the discrete time hazard model framework of Shumway (2001) to test the information content of both market and accounting based models using Australian data. We …nd that market based models signi…cantly outperformed accounting based m...

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...