One of the elements of company’s evaluation is ratio analysis. It includes computation of bankruptcy risk metrics … indebtedness ratio. In this study, the accuracy of bankruptcy predictions based on these two ratios is evaluated within a sample of …

The aim of this study was to investigate whether firms’ reporting delays are interconnected with bankruptcy risk and … delay, either in a binary or ordinal form, was used as the dependent variable, while bankruptcy risk based on an … a higher risk of bankruptcy were more likely to delay the submission of their annual reports. Firms with different ages …

We examine the puzzling negative relation between financial distress risk and the cross-section of expected returns. We … most recent distress risk shocks to which investors initially underreact, causing temporary overpricing of distressed … stocks. In the long run, the relation between distress risk and returns reflects the positive risk premium as distress risk …

We construct a theoretical framework to investigate the impact of liquidity risk, in the secondary corporate debt … market, on corporate risk-taking preferences. Using closed-form solutions, our model shows that equity holders choose to … adopt high-risk projects upon the arrival of illiquidity shocks. This effect is more pronounced for firms with weaker …