The paper analyses options in case of insolvency. Although insolvency plans empirically are very successful, they are not used very much. Reasons that prevent their application and possibilities for their promotion are discussed.

This study develops a mathematical framework to analyze the time series of profitability ratios in the early stages of a startup. It is assumed that the expenditure of the startup grows at a steady rate and generates a proportionally identical flow of revenue in each period. The profitability in...

Accurate probability-of-distress models are central to regulators, firms, and individuals who need to evaluate the default risk of a loan portfolio. A number of papers document that recent machine learning models outperform traditional corporate distress models in terms of accurately ranking...

This paper analyses debtors who applied for debt relief in the period between 1/1/2012 and 31/12/2013. As there has already been a research related to Moravian and Silesian regions in this matter, it focuses mainly on the debtors from Bohemian regions. It is therefore an analysis of a problem...

Firm-level default models are important for bottomup modeling of the default risk of corporate debt portfolios. However, models in the literature typically have several strict assumptions which may yield biased results, notably a linear effect of covariates on the log-hazard scale, no...

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...

In this paper (letter) I discuss how blockchains potentially could affect the way credit risk is modeled, and how the improved trust and timing associated with blockchain-enabled real-time accounting could improve default prediction. To demonstrate the (quite substantial) effect the change would...

This article attempts to identify the default risk measure which best reflects the idiosyncratic context of public family firms. Seven accounting- and market-based measures are compared over a sample of 981 US family and non-family firms for the period 2000-2016. The results show that the...

Recently, there have been several retail companies experiencing bankruptcy. Many studies on bankruptcy risk are more seen from the financial performance perspective. Studies on the risk of financial performance are good but it seems too late to detect the risk. So far, no research investigates...