This paper examines prediction of U.S. bank failure with a probit model that uses bias-corrected technical efficiency estimated using bootstrap data envelopment analysis as the measure of management quality. The model is tested on a sample of failed and non-failed banks during the sub-prime...

This paper examines prediction of U.S. bank failure with a probit model that uses bias-corrected technical efficiency estimated using bootstrap data envelopment analysis as the measure of management quality. The model is tested on a sample of failed and non-failed banks during the sub-prime...

With a state preference model, we illustrate how differences in bankruptcy code across countries affect managerial incentives and firm value. We examine bankruptcy codes of the G-7 countries in some detail and tie differences to model outcomes. We substantiate the economic effect of these...

We provide the first empirical evidence that differences in firm equity returns are correlated with differences in bankruptcy code among six of the G-7 countries (Canada, France, Germany, Great Britain, Japan and the U.S.). We document patterns in both filing data and equity returns for a sample...