This paper integrates the problem of designing corporate bankruptcy rules into a theory of optimal debt structure. We show that, in an optimal contracting framework with imperfect renegotiation, having multiple creditors increases a firm’s debt capacity while increasing its incentives to default strategically. The optimal debt contract gives creditors claims that are jointly inconsistent in cas...

The problem of bankruptcy forecasting is one of the most actively studied nowadays, posing the task of building effective classifiers as well as the task of dealing with dataset imbalance. In this paper, we apply different combinations of modern learning algorithms (MDA, LR, CRT, and ANNs) in order to try to identify the most effective approach to bankruptcy prediction for Russian manufacturing...

It is widely believed that the whole economic system has exhibited an increasingly intertwined nature in the context of economic globalization and regional integration. With the increasing interactions among trading partners in a supply network, bankruptcy of a member firm may make others get into distressed situations. This kind of phenomena is called bankruptcy diffusion or bankruptcy contagi...

The paper is devoted to two real problems that generate a cooperative game model with a so-called k-convex characteristic function when certain conditions are fulfilled. Both a bankruptcy problem and an information trading problem are modelled as a cooperative game by constructing the corresponding bankruptcy game as well as the information market game. Firstly, it is established that the bankr...

Knowledge discovery in databases (KDD) is the process of discovering interesting knowledge from large amounts of data. However, real-world datasets have problems such as incompleteness, redundancy, inconsistency, noise, etc. All these problems affect the performance of data mining algorithms. Thus, preprocessing techniques are essential in allowing knowledge to be extracted from data. This work...

A moral hazard problem develops when a factor cannot contract upon a seller’s ex-post level of credit management. Because of the deleterious price impact of the moral hazard problem, sellers with a sufficiently high bankruptcy risk may be unable to factor their entire accounts receivable pool, even though they offer recourse. The structure of the equilibrium factoring contract is empirically te...

The purpose of the study is to determine key factors affecting occurrence insufficiency debtors’ property in modern conditions, as well formulate main directions overcoming them. methodological basis research was dialectical method scientific knowledge, general (analysis, synthesis, modeling), and special methods (formal legal, statistical). result work formulation substantiation tasks, setting...

We reexamine the consistency axiom in bankruptcy problems and propose arguments in favor of an alternative definition of a reduced problem. The classical definition updates the size of the estate while keeping agents’ claims unaffected. Instead, we suggest updating agents’ claims along with the estate. The resulting consistency axiom characterizes the well-known Random Arrival rule as the uniqu...

Does an entrepreneur-friendly bankruptcy law encourage more entrepreneurship development at a societal level? How does bankruptcy law affect entrepreneurship development around the world? Drawing on a real options perspective, we argue that if bankrupt entrepreneurs are excessively punished for failure, they may pass potentially high-return but inherently high-risk opportunities. Amassing a lon...