Purpose - Despite the sophisticated regulatory regime established in Solvency II, analysts should be able to consider other less complex indicators of the soundness of insurers. The Z-score measure, which has traditionally been used as a proxy of individual risk in the banking sector, may be a...

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...

Background: The suitability and performance of the bankruptcy prediction models is an empirical question. The aim of this paper is to develop a bankruptcy prediction model for Indian manufacturing companies on a sample of 208 companies consisting of an equal number of defaulted and non-defaulted...

Default probability is a fundamental variable determining the credit worthiness of a firm and equity volatility estimation plays a key role in its evaluation. Assuming a structural credit risk modeling approach, we study the impact of choosing different non parametric equity volatility...

Purpose - The paper will addresses the issue of inactivity and will try to detect its causes using econometric models. The Banking sector of Europe has been under transformation or restructuring for almost half a century. Design/methodology/approach - Probit models and descriptive statistics...

Company bankruptcies are an inseparable element of market economy. We may observe the tendency to view bankruptcy as a problem of weak and usually small entities facing problems when trying to meet the challenge posed by strong competition. Big companies, however, also fall, and their bankruptcy...

Market situation and business environment of construction companies influence significantly decisions met by this group of entities. These decisions are reflected in financial statements, later on. The evaluation of financial condition, which aims at diagnosing corporate crisis, must not...

The paper discusses methodological topics of bankruptcy prediction modelling—unbalanced sampling, sample bias, and unbiased predictions of bankruptcy. Bankruptcy models are typically estimated with the use of non-random samples, which creates sample choice biases. We consider two types of...

Despite the number of studies on bankruptcy prediction using financial ratios, very little is known about how external audit information can contribute to anticipating financial distress. A handful of papers have shown that a combination of ratios and audit data is significant for predictive...

Seit 16 Jahren sinkt die Anzahl der Unternehmensinsolvenzen in Deutschland, nur kurz unterbrochen durch die Folgen der globalen Finanzmarkt- und Wirtschaftskrise 2008/2009. Die stabile wirtschaftliche Entwicklung mit steigenden Einkommen und wachsender Beschäftigung dürfte hierzu ebenso...