We have often observed, e.g. Altman, Hotchkiss (2006), that the market for investing in distressed securities, (the so-called “vulture” markets), had captured the interest of increasing numbers of investors and analysts. These investors, sometimes categorized as “alternative asset”...

Reviews on financial distress prediction models indicate that these techniques give highly reliable estimates of probabilities of default (PDs) and loss given default (LGD) only for relatively short horizons, rarely beyond two years. Major stakeholders, e.g. investors and bank risk and capital...

The purpose of this paper is firstly to review the literature on the efficacy and importance of the Altman Z-Score bankruptcy prediction model globally and its applications in finance and related areas. This review is based on an analysis of 33 scientific papers published from the year 2000 in...

It is widely believed that the stock-market oriented US financial system forces corporate managers to behave myopically relative to their Japanese counterparts, who operate in a bank-based system. We hypothesize that if US firms are more myopic than Japanese firms, then episodes of financial...

This paper explores the scope and importance of the distressed debt market and its market participants and summarizes several relevant scholarly publications relating to how both these markets and participants have performed and contributed to the Chapter 11 bankruptcy-reorganization process. We...

Forty years ago, I developed a method of predicting bankruptcies by U.S. [public] companies that makes use of equity market values as well as fundamental financial and operating data. Since that time, my 'Z-Score' model has become one of the most widely used methods for assessing the...

SME default prediction is a long-standing issue in the finance and management literature. Proper estimates of the SME risk of failure can support policymakers in implementing restructuring policies, rating agencies and credit analytics firms in assessing creditworthiness, public and private...