The Relevance and Utility of Distress Risk and Corporate Failure Forecasts -- Searching for the Holy Grail: Alternative Statistical Modelling Approaches -- The Rise of the Machines -- An Empirical Application of Modern Machine Learning Methods -- Corporate Failure Models for Private Companies,...

The Relevance and Utility of Distress Risk and Corporate Failure Forecasts -- Searching for the Holy Grail: Alternative Statistical Modelling Approaches -- The Rise of the Machines -- An Empirical Application of Modern Machine Learning Methods -- Corporate Failure Models for Private Companies,...

The term "information risk" or "information uncertainty" is defined as the risk of a misleading signal. This risk is understood Bayesianly in terms of the likelihood function f(S|φ). In Bayesian method, f(S|φ) captures the quality of signal S with respect to parameter φ. The Bayesian position...

The model of rational decision-making in most of economics and statistics is expected utility theory (EU) axiomatised by von Neumann and Morgenstern, Savage and others. This is less the case however in financial economics and mathematical finance, where investment decisions are commonly based on...

We explore how risk aversion affects optimal capacity and pricing decisions within the economic setting of Banker and Hughes (1994). A risk averse firm invests in fixed capacity and sets a product price, but can also purchase spot capacity at higher unit cost. Initial capacity and price are set...