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...

Ensemble classification involves combining multiple classifiers to obtain more accurate predictions than those obtained using individual models. Ensemble techniques are known to be very useful in improving the generalization ability of a classifier. The random subspace ensemble technique is a simple but effective method of constructing ensemble classifiers, in which some features are randomly d...

In this paper, we investigate whether and how personal bankruptcy law a ects small rms' access to credit. When a rm is unincorporated, its debts are personal liabilities of the rm's owner, so that lending to the rm is equivalent to lending to its owner. If the rm fails, the owner has an incentive to le for personal bankruptcy in order to obtain discharge of the rm's debts. While bankruptcy law ...

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 this paper we model the spillovers from the restructuring of a financially distressed firm on other firms and the feedback effects from the restructuring. Our results indicate that the spillover and feedback effects are complex and are determined by several factors including the level of information asymmetry regarding the restructuring firm, its direct bankruptcy cost, bankruptcy’s effect o...

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...

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...