The quantitative analyses related to firms’ default prediction extensively analyzed which balance sheet ratios include significant information on the probability of default of a firm. These analyses are typically aimed at measuring a generic default risk, while no analyses are aimed at...

In this paper, we describe an ongoing project to assess the liquidity risk of small and medium enterprises (SMEs) in a network. In doing so we try to mimic the tracing applications that have been done to Covid-19. We built a simple artefact under the shape of a method called LUC (Liquidity for...

"Do bankrupt firms impose negative externalities on their non-bankrupt competitors? We propose and analyze a collateral channel in which a firm's bankruptcy reduces collateral values of other industry participants, thereby increasing the cost of external debt finance industry wide. To identify...