When companies fail workers lose their jobs which raises the unemployment rate and some displaced workers with less financial wealth, larger financial obligations, and who are the sole bread winners in a family become likely candidates for a personal bankruptcy filing. The central role played by...

During the boom that preceded the economic collapse of 2007-2009, the expression “the world is awash in liquidity” was frequently heard when speakers described the state of the economy. The expression meant that money was freely available to almost any borrower. The list of suitable...

Since the April 2005 passage of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), companies have discovered that bankruptcy has become a quicksand of unexpected surprises that quickly forces companies into liquidation or forced asset sales under section 363 of the Bankruptcy...

Early warning models are among the most utilized developments in finance. A good early warning model can predict with a high degree of accuracy the likelihood that a healthy company will either go bankrupt or become financially distressed. B2B companies supply products are now global. This paper...

The first wave of highly leveraged transactions (HLTs) also known as leveraged buyouts (LBOs) began in the late 1980s. Fewer transactions occurred in the 1990's after a number of companies in the first wave failed when the economy slowed down. More recently, the driving force behind levered...

Globalization has precipitated movement of output and employment between regions. How similar are companies in different regions following this dramatic shift in economic activity? Corporate comparisons to test global convergence could be made along numerous dimensions. We look at firms along...

The paper examines whether it is better to separate a model/sample to account for differences between large and small firms when developing a predictive tool to identify which companies are likely to become distressed, and therefore at risk to the supply chain. Previous research has scaled data...

We investigate the ratio of terminal value (TV) to present value (PV) for a variety of enterprises. Calculations are derived at different time periods and for various size deciles and industry. We document that when there are more years of data available that the TV/PV ratio decreases. We also...

The relationship between personal and firm bankruptcy is intuitively understood but has not been previously studied. When a person files a bankruptcy petition they reduce their spending on goods and services sold by companies. Similarly, when a firm files for bankruptcy some employees lose their...

Evidence that option trading can influence the prices of the underlying common stocks is discussed. This research was conducted in the time frame 1981-1982 and that was before there were many articles about deviations from efficient-market pricing. Stock prices were believed to fluctuate without...