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In this study we investigate how bankruptcy affects the market behaviour of prices of stocks on Warsaw’s Stock Exchange. As the behaviour of prices can be seen in a myriad of ways, we investigate a particular aspect of this behaviour, namely the predictability of these price formation...
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Using a structural model of default, we construct a measure of systemic default defined as the probability that many firms default at the same time. We account for correlations in defaults between firms through exposures to common shocks. The systemic default measure spikes during recession...
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Risk of financial failure is defined as the inability of a firm to pay its current liabilities. Financial failure may … lead firms to bankrupt or go into liquidation. This paper aims to develop reliable model to identify the financial failure … financial ratios to predict the financial failure of firms and develop the most reliable model by analysing these ratios …
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The world has seen the number of companies going bankrupt on the rise over the years owing to a lot of internal factors such as management, asset quality and structuring of resources and external factors such as economic, political, recently the pandemic, the Russia Ukraine war among others....
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identifying firms with a higher risk of financial failure and consequent larger negative stock returns in the event of an …
Persistent link: https://www.econbiz.de/10012893618