Despite the copious number of statistical failure prediction models described in the literature, testing of whether such methodologies work in practice is lacking. This paper examines the performance of the same companies with solvency for predicting bankruptcy and comparison in both models....

Credit-risk models that are designed for general application across sectors may not be suitable for the construction industry, which has unique characteristics and financial risks that require specialised modelling approaches. Moreover, advanced bankruptcy-prediction models are often used to...

The purpose of this study was to develop a new bankruptcy prediction framework that considers a wider range of factors beyond traditional financial ratios and improve the efficiency and accuracy of bankruptcy prediction models in the Indian ecosystem. The financial statements of three Indian...

Banks face adverse selection problem in granting loans due to asymmetric information about their debtor's financial condition which in turn causes bank to be exposed to credit risk. The Basel II accord requires banks to develop quantitative credit risk model as a base for determining their...