This empirical study analyzes the value destruction in US and German firms prior and around their bankruptcy announcement and makes a matched sample comparison between the two bankruptcy codes. The dataset consists of 1160 US and 116 German firms, having filed for bankruptcy between 1999 and 2007. Different market and balance sheet based data are used to explain the divergent stock reaction aro...

BACKGROUND We examined the association between personal bankruptcy filing and acute myocardial infarction (AMI) rates in Canada. METHODS Between 2002 and 2009, aggregate and yearly bankruptcy and AMI rates were estimated for 1,155 forward sortation areas of Canada. Scatter plot and correlations were used to assess the association of the aggregate rates. Cross-lagged structural equation models...

An understanding of factors related to trends in the incidence of personal nonbusiness bankruptcy is important to credit managers as well as to economists. This study updates and extends to 1982 an earlier study of economic factors associated with the incidence of bankruptcy from 1950 to 1970. This study shows that the incidence of personal bankruptcy follows movements in a measure of the aggre...

Bankruptcy prediction has attracted a lot of research interests in previous literature, and recent studies have shown that artificial neural networks (ANN) method achieved better performance than traditional statistical ones. ANN approaches have, however, suffered from difficulties with generalization, producing models that can overfit the data. This paper employs a relatively new machine learn...

The U.S. personal bankruptcy system functions as a bankruptcy system for small businesses as well as consumers, because debts of noncorporate firms are personal liabilities of the firms’ owners. If the firm fails, the owner has an incentive to file for bankruptcy, since both business debts and the owner’s personal debts will be discharged. In bankruptcy, the owner must give up assets above a fi...

Bankruptcy is a highly significant worldwide problem with high social costs. Traditional bankruptcy risk models have been criticized for falling short with respect to bankruptcy theory building due to either modeling assumptions or model complexity. Genetic programming minimizes the amount of a priori structure that is associated with traditional functional forms and statistical selection proce...

This paper examines the causes of bankruptcy for a sample of 949 UK listed companies between 1987–1994. The most important determinants of bankruptcy are profitability, leverage, cashflow, company size, industry sector and the economic cycle. Tests for heteroskedasticity revealed that cashflow and leverage have significant non-linear effects, and taking account of these non-linearities improves...

 In this paper, a new Dynamic Geometric Genetic Programming (DGGP) technique is applied to empirical analysis of financial ratios and bankruptcy prediction. Financial ratios are indeed desirable for prediction of corporate bankruptcy and identification of firms’ impending failure for investors, creditors, borrowing firms, and governments. By the time, several methods have been attempted in...

This paper tests whether Chapter 11 restructuring outcomes are affected by time constraints in busy bankruptcy courts. On average, total bankruptcy filings rise by 32% during economic recessions, leaving bankruptcy judges with far less time per case exactly when financial distress is worst. Using the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) in 2005 as an e...