Creditors such as banks frequently use expert systems to support their decisions when issuing loans and credit assessment has been an important area of application of machine learning techniques for decades. In practice, banks are often required to provide the rationale behind their decisions in...

Poor corporate governance can damage the interests of shareholders, and may lead to company collapse. Previous studies in credit risk prediction provide no consensus as to which and how corporate governance variables determine bankruptcy. This paper is the first to apply a discrete time hazard...