This empirical paper investigates the path to bankruptcy for a sample of French firms in default, in particular the decision to file a petition for bankruptcy, the arbitrage between rescuing and liquidation and the effective survival. The procedure is depicted as a sequence of three steps in...

The paper deals with the topic of modelling the probability of bankruptcy of Polish enterprises using convolutional neural networks. Convolutional networks take images as input, so it was thus necessary to apply the method of converting the observation vector to a matrix. Benchmarks for...

In view of the failure of high profile companies like Circuit City and Linens n Things, Financial distress or bankruptcy prediction has generated much interest recently. This research develops and tests a model for the prediction of bankruptcy of retail firms. We use accounting variables such as...

Prediction of corporate failure is one of the major activities in auditing firms risks and uncertainties. The design of reliable models to predict bankruptcy is crucial for many decision-making processes. Although a large number of models have been designed to predict bankruptcy, the relative...

The objective of this paper is to critically evaluate the main weaknesses associated with the limitations of financial failure prediction research studies. For more than 80 years, researchers have unsuccessfully studied ways to create a general theory of financial failure, which is useful for...

Four new ratios, that capture firms' Stability, Downside Risk and Audit Quality, are significant predictors of financial distress as evidenced by bankruptcy. Moreover, they improve substantially a logit based credit metric when combined with other classic ratios. A credit metric that comprises a...

The goal of this paper is to build an operational model for evaluating the financial viability of local municipalities in Greece. For this purpose, a multicriteria methodology is implemented combining a simulation analysis approach (stochastic multicriteria acceptability analysis) with a...

Cilj ovog rada je ukazivanje na stečajni postupak i finansijsko izveštavanje kao manje poznate aspekte zaštite životne sredine. Skromna su istraživanja iz ove oblasti jer su pomenute teme inače nedovoljno zastupljene u sferi ekonomije, a naročito u oblasti zaštite životne sredine. U...

We examine the relation between accounting conservatism and creditor recovery rates for firms in default. We also test the link between conservatism and the length of distress resolution proceedings. We find creditors of firms with more conservative accounting prior to default have significantly...