Altman's Z-Score is one of the best known, statistically derived predictive models used to forecast a firm's impending bankruptcy. Altman's model utilises multiple discriminant analysis (MDA). MDA is used to classify an observation into one of two or more groups that have been established by the...

Although businesses may have varying purposes, the main objective is the same for all of them and it is simply avoiding bankruptcy. Since a company's bankruptcy is critical for not only its stakeholders but also for the oth- er parties such as its suppliers and creditors, the ability to diagnose...

The stock market’s reaction to news can be a particularly valuable source of information that may lead to inferences about the nature of a merger or a take-over. The idea underlying event studies is that the reaction of share prices - which reflect expectations about a firm’s stream of...

European stock exchanges are turning into public listed organisations, after demutualisation, and aim at maximising profits for their stockholders. Stock exchanges are moving from an era of monopolies to a new era marked by competition. A study shows that 60 new financial stock exchanges were...

The European debate on abuse of dominance issues in antitrust has been recently characterized by an emphasis on purely economic aspects, and by an emerging consensus on the merits of taking an “effects-based approach” aimed at the maximization of consumer welfare and the protection of...

Economic analysis plays a pivotal role in competition enforcement. Integrating an economic perspective on merger control with a legal perspective throughout, this is a comprehensive reference work on merger control in the EU. Each chapter includes an analysis of the economic methods that have...

European Community Merger Regulation : Council regulation (EC) no 4064/89 -- The new European Community Merger Regulation - Council Regulation (EC) no 139/2004 -- Merger assessment and the legal substantive test : quantitative methods in merger analysis -- Mergers leading to non-coordinated...