I develop a new predictive approach using Bayesian model averaging to account for incomplete knowledge of the true model behind corporate bankruptcy. I find that uncertainty over the correct model is empirically large, with far fewer variables significant predictors of bankruptcy compared to conventional approaches. Only the ratio of total liabilities to total assets and the volatility of marke...

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 document insider opportunism in an insolvency regime that is characterized by weak creditor rights and uses an accounting rule to determine bankruptcy eligibility. Using a unique dataset of bankrupt firms from India, we show insiders manage earnings downward before filing for bankruptcy via inventory and trade receivable accruals. A battery of robustness tests confirm accrual behavior is not...

This paper considers the significance of credit markets and bankruptcy for life course mobility. Comparing parallel data from the 2007 Survey of Consumer Finances (SCF) and the 2007 Consumer Bankruptcy Project (CBP), we analyze use of the bankruptcy process as a function of the distribution of unplanned events, the ability of households to use credit markets to limit the adverse effects of such...

Actuality of research of the methods of bankruptcy prognostication of the enterprise is based on the following – in Latvia until now there is not the method of calculation of coefficients debugged and adapted to the Latvian terms for prognostication of bankruptcy. The estimation of probability of bankruptcy is made on the basis of the real standards, which exist in the world practice, but does ...

In a tree enterprise, users reside at the nodes of the tree and their aim is to connect themselves, directly or indirectly, to the root of the tree. The construction costs of arcs of the tree are given by means of the arc-cost-function associated with the tree. Further the bankruptcy venture is described in terms of the estate of the bankrupt firm and the claims of the various creditors. The fi...

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...

This study aims to examine whether the condition of bankruptcy risk a company will influence market response capital expenditure. The main hypothesis this research is positive reaction level expenditure issued be different in companies with high and low risk. was conducted on 56 large capitalization Indonesia Stock Exchange for period 2018-2021. results testing indicate that responds positively...