The objective of the paper is to survey the literature on capital structure theory, both traditional and modern approaches and choose an appropriate theoretical construct as a basis for identifying factors that will explain the state of financial distress/level of credit risk among corporate's....

The current standardized approach for assessing credit risk under Basel III depends on ratings assigned by credit rating agencies (CRAs). However, this approach presents three problems. First, the definitions of ratings used by CRAs to assess the likelihood of default and recovery rates are not...

Based on a rich dataset of recoveries donated by a debt collection business, recovery rates for non-performing loans taken from a single European country are modelled using linear regression, linear regression with Lasso, beta regression and inflated beta regression. We also propose a two-stage...