WorldWideScience

Sample records for bankruptcy

  1. Understanding Bankruptcy

    DEFF Research Database (Denmark)

    Gerstrøm, Anna; Isabella, Lynn A.

    2015-01-01

    bank that went bankrupt as a consequence of the large and global crisis. Based on narrative interviews with 20 organizational members' the article offers a model that theorizes bankruptcy as a series of unfolding events that change a work world. Members narrate their immediate experience as a work....... The article matters for theorists researching the understudied but relevant issue of organizational death and practitioners struggling with the increasing but troubling problems of corporate bankruptcy. At the end of the article, avenues for further research are outlined....

  2. Nontransferable Utility Bankruptcy Games

    OpenAIRE

    Estévez-Fernández, Arantza; Borm, Peter; Fiestras-Janeiro, M. Gloria

    2014-01-01

    In this paper, we analyze bankruptcy problems with nontransferable utility (NTU) from a game theoretical perspective by redefining corresponding NTU-bankruptcy games in a tailor-made way. It is shown that NTU-bankruptcy games are both coalitional merge convex and ordinal convex. Generalizing the notions of core cover and compromise stability for transferable utility (TU) games to NTU-games, we also show that each NTU-bankruptcy game is compromise stable. Thus, NTU-bankruptcy games are shown t...

  3. Modernizing Italy's Bankruptcy Law

    OpenAIRE

    Vietti, Michele

    2007-01-01

    Reforming bankruptcy laws is difficult for many reasons. First of all, attitudes in Italy toward bankruptcy make it a difficult subject to generate support for. Secondly, bankruptcy reforms are complex and lengthy. They require changes not only to the bankruptcy law but also to other important parts of the legal framework, such as the codes of civil procedures and, in the case of Italy, the ...

  4. Symptoms of Bankruptcy and Prediction Models of Bankruptcy Risk

    OpenAIRE

    CIOTINA Daniela; Ioan Marius CIOTINA

    2013-01-01

    This paper makes a brief literature review on symptoms of bankruptcy and prediction models of bankruptcy risk. When it comes to bankruptcy we must start from the symptoms that lead to the financial failure of a company. Financial failure or bankruptcy of a company is an event that may cause losses to banks, suppliers, shareholders and the wider community; they are interested in predicting bankruptcy of a company and how and when it will fail. Bankruptcy is often a consequence of the inefficie...

  5. Residential housing and personal bankruptcy

    OpenAIRE

    Wenli Li

    2009-01-01

    Bankruptcy filings are on the rise, and millions of households have either lost their homes to foreclosure or are on the verge of losing them. One subject of debate amid this rising number of bankruptcies is how personal bankruptcy laws deal with residential housing. This subject centers on two main issues: First, how do personal bankruptcy laws affect the availability of mortgages and the terms on which borrowers obtain mortgages? Second, how do personal bankruptcy filings affect the outcome...

  6. Agent Simulation of Chain Bankruptcy

    OpenAIRE

    Yuichi Ikeda; Yoshi Fujiwara; Wataru Souma; Hideaki Aoyama; Hiroshi Iyetomi

    2007-01-01

    We have conducted an agent-based simulation of chain bankruptcy. The propagation of credit risk on a network, i.e., chain bankruptcy, is the key to nderstanding largesized bankruptcies. In our model, decrease of revenue by the loss of accounts payable is modeled by an interaction term, and bankruptcy is defined as a capital deficit. Model parameters were estimated using financial data for 1,077 listed Japanese firms. Simulations of chain bankruptcy on the real transaction network consisting o...

  7. Do Casinos Export Bankruptcy?

    OpenAIRE

    Garrett, Thomas A; Mark W. Nichols

    2006-01-01

    This paper measures the extent to which destination resort casinos export bankruptcy back to visitors' home states. Previous literature has alluded to this possibility, but to date studies have only examined the influence of local casinos on local bankruptcy. Using various survey data, we calculate the number of visits from each state to casino resort destinations in Nevada, New Jersey, and Mississippi. We find strong evidence that states having more residents who visit out-of-state casino re...

  8. Bankruptcy problems with interval uncertainty

    OpenAIRE

    Rodica Branzei; Sirma Zeynep Alparslan Gok

    2008-01-01

    In this paper, bankruptcy situations with interval data are studied. Two classical bankruptcy rules, namely the proportional rule and the rights-egalitarian rule, are extended to the interval setting. It turns out that these bankruptcy interval rules generate elements in the interval core of a related cooperative interval game.

  9. Bankruptcy Reform and Credit Cards

    OpenAIRE

    White, Michelle J.

    2007-01-01

    From 1980 to 2004, the number of personal bankruptcy filings in the United States increased more than five-fold, from 288,000 to 1.5 million per year. Lenders responded to the high filing rate with a major lobbying campaign for bankruptcy reform that led to the adoption in 2005 of the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), which made bankruptcy law much less debtor-friendly. The paper first examines why bankruptcy rates increased so sharply. I argue that the main ex...

  10. Computation of bankruptcy rules

    OpenAIRE

    Saavedra, Verónica; Lopez, Marcelo; Necco, Claudia Mónica; Quintas, Luis Guillermo

    2003-01-01

    We implemented a system that computes bankruptcy rules. The implemented rules are: The Talmud, the Proportional, the Truncated Proportional, the Adjusted Proportional, the Constrained Equal Awards and the Random Arrival rule. The system computes, compares and graphics the different allocations to claimants. We present some applications and examples exported by the system.

  11. Academic Bankruptcy. Policy Brief.

    Science.gov (United States)

    Anderson, Amy Berk; Lewis, Anne C.

    In an effort to improve student achievement in low-performing districts, 22 states have developed academic bankruptcy laws, allowing them to intervene in districts that consistently fail to satisfy state education performance standards. This policy brief presents an overview of these statutes. The text offers a comparative summary of state…

  12. Bankruptcy: three Years after the Bankruptcy Reform Act of 2005

    OpenAIRE

    Helen Mirza

    2009-01-01

    On October 17, 2005, a major U.S. federal bankruptcy reform law took effect. This change (the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, a.k.a. the Bankruptcy Reform Act of 2005) had been over 10 years in the making and represented the culmination of years of effort on the part of both consumer advocates and lenders, as well as regulators and others. This act amended the 1978 bankruptcy code, and was the most significant and sweeping change since that date. We summarized...

  13. Unsecured debt, consumer bankruptcy, and small business

    OpenAIRE

    Meh, Césaire A.; Terajima, Yaz

    2008-01-01

    In this paper we develop a quantitative model of entrepreneurial activity (risk-taking) and consumer bankruptcy choices and use the model to study the effects of bankruptcy regulations on entrepreneurial activity, bankruptcy rate and welfare. We show that eliminating bankruptcy exemptions leads to a modest increase in the fraction of entrepreneurs, a large decrease in the overall bankruptcy rate and a significant welfare gain. In contrast, eliminating the whole consumer bankruptcy system lead...

  14. Household Consumption and Personal Bankruptcy

    OpenAIRE

    Ning Zhu

    2011-01-01

    This paper utilizes the population of personal bankruptcy filers in the state of Delaware during 2003 and finds that household expenditures on durable consumption goods, such as houses and automobiles, contribute significantly to personal bankruptcy filings. Medical conditions also lead to personal bankruptcy filings, but other adverse events, such as divorce and unemployment, have marginal effects. My findings suggest that consumption patterns make households financially overstretched and mo...

  15. Declaring Bankruptcy on Educational Inequity

    Science.gov (United States)

    Bass, Lisa; Gerstl-Pepin, Cynthia

    2011-01-01

    The authors consider Ladson-Billings' (2006) charge to reframe the way the "achievement gap" is viewed, and put forth the metaphor of "bankruptcy" as a way to acknowledge the educational debt and educational inequity and move towards debt forgiveness in public education. Specifically, the bankruptcy metaphor is used to examine the debt embedded in…

  16. RETAIL BANKRUPTCY PREDICTION

    Directory of Open Access Journals (Sweden)

    Johnny Pang

    2013-01-01

    Full Text Available This study reintroduces the famous discriminant functions from Edward Altman and Begley, Ming and Watts (BMW that were used to predict bankrupts. We will formulate three new discriminant functions which differ from Altman’s and BMW’s re-estimated Altman model. Altman’s models as well as Begley, Ming and Watts’s re-estimated Altman model apply to publicly traded industries, whereas the new models formulated in this study are based on retail companies. The three new functions will provide better predictions on retail bankruptcy and they will minimize the chance of misclassifications.

  17. Financial benefits, travel costs, and bankruptcy

    OpenAIRE

    Mikhed, Vyacheslav; Scholnick, Barry

    2014-01-01

    We are the first to show that the cost of personal bankruptcy filers traveling to their bankruptcy trustees affects bankruptcy choices. We use detailed balance sheet, income statement, and location data from 400,000 Canadian bankruptcies. To control for endogenous trustee selection, we use the location of local government offices as an instrument for the location of bankruptcy trustees (while filers interact with trustees, and trustees interact with local government, filers do not interact wi...

  18. Leveraged Buyouts and Bankruptcy Risk

    OpenAIRE

    Remisha, Tassa

    2013-01-01

    The issue of leveraged buyouts has always been associated with the increase of the likelihood of bankruptcy and the engagement of an intensive use of debt is deemed to be the primary cause. This study attempts to discern whether or not the LBO companies are subject to bankruptcy risk by applying the Cox proportional hazard model. The results of this study suggest that indeed the LBO companies are subject to a higher bankruptcy risk than other companies, yet leverage evidently is not the main ...

  19. Models to Assess the Bankruptcy Risk

    Directory of Open Access Journals (Sweden)

    Simona Valeria TOMA

    2013-08-01

    Full Text Available Closely related to financial risk assessment, one of the main concerns of the organizations should be the evaluation of bankruptcy risk, in this period of slow economic growth. Organization bankruptcies have increased in recent years worldwide. The aim of this paper is to demonstrate that the methods and models for forecasting bankruptcy of organizations, for the bankruptcy risk assessment are seeing for the health financing of an entity in financial accounting diagnosis and that the organizations requires assessment of risks accompanying the work, in which some signals fragility (vulnerable health this and other projected bankruptcy (insolvability threatens its survival (continuity. The bankruptcy risk assessment is important for profit-seeking investors because they must know how to value a company in or near bankruptcy is an important skill, but to detect any signs of looming bankruptcy is necessary to calculate and to analyse all kinds of financial rations: working capital, profitability, debt levels and liquidity.

  20. A Flow Approach to Bankruptcy Problems

    OpenAIRE

    Branzei, Rodica; Ferrari, Giulio; Fragnelli, Vito; Tijs, Stef

    2008-01-01

    In this note we represent a classical bankruptcy problem as a standard flow problem on a simple network and implement some known division rules from the bankruptcy literature via suitable cost functions in the related minimum cost flow problem.

  1. Insolvency After the 2005 Bankruptcy Reform

    OpenAIRE

    Albanesi, Stefania; Nosal, Jaromir

    2015-01-01

    Using a comprehensive panel data set on U.S. households, we study the effects of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), the most substantive reform of personal bankruptcy in the United States since the Bankruptcy Reform Act of 1978. The 2005 legislation introduced a means test based on income to establish eligibility for Chapter 7 bankruptcy and increased the administrative requirements to file, leading to a rise in the opportunity cost and, especially, the...

  2. An analysis of dynamic bankruptcy problems

    OpenAIRE

    Turhan, Bertan

    2009-01-01

    In this paper, we analyse Pareto optimal and strategy-proof allocation rules on the dynamic bankruptcy domain. We first develop a model in which dynamic bankruptcy problems are defined. We then redefine the well-known axioms of the classical bankruptcy literature for the dynamic case. In our analysis, for simplicity, two agents and two periods are considered. We first characterize Pareto optimal allocations on the dynamic bankruptcy domain. The main result of the paper characterizes the Paret...

  3. Insolvency After the 2005 Bankruptcy Reform

    OpenAIRE

    Albanesi, Stefania; Nosal, Jaromir

    2015-01-01

    Using a comprehensive panel data set on U.S. households, we study the effects of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), the most substantive reform of personal bankruptcy in the United States since the Bankruptcy Reform Act of 1978. The 2005 legislation introduced a means test based on income to establish eligibility for Chapter 7 bankruptcy and increased the adminis- trative requirements to file, leading to a rise in the opportunity cost and, especially, t...

  4. Regulating Consumer Bankruptcy: A Theoretical Inquiry

    OpenAIRE

    Barry Adler; Ben Polak; Alan Schwartz

    1999-01-01

    This paper uses a principal/agent framework to analyze consumer bankruptcy. The bankruptcy discharge partly insures risk averse borrowers against bad income realizations, but also reduces the borrower's incentive to avoid insolvency. Among our results are: (a) High bankruptcy exemptions increase bankruptcy insurance but at the cost of reducing the borrower's incentives to stay solvent; (b) Reaffirmations -- renegotiations -- have ambiguous efficiency effects in general, but the right to reneg...

  5. Zipf law in firms bankruptcy

    Science.gov (United States)

    Fujiwara, Yoshi

    2004-06-01

    Using an exhaustive list of Japanese bankruptcy in 1997, we discover a Zipf law for the distribution of total liabilities of bankrupted firms in high debt range. The life-time of these bankrupted firms has exponential distribution in correlation with entry rate of new firms. We also show that the debt and size are highly correlated, so the Zipf law holds consistently with that for size distribution. In an attempt to understand “physics” of bankruptcy, we show that a model of debtor-creditor dynamics of firms and a bank, recently proposed by economists, can reproduce these phenomenological findings.

  6. Discharging Student Loans in Bankruptcy.

    Science.gov (United States)

    Ahart, Alan M.

    1978-01-01

    Section 439A of the Education Amendments of 1976 restricts the dischargeability of federal student loans to cases of "undue hardship." The origin, applications, and legal procedures involved in Section 439A and in Section 523(a) of the new Bankruptcy Code are examined and suggestions are made for determining the meaning of "undue hardship." (SF)

  7. An Equilibrium Model of the Timing of Bankruptcy Filings

    OpenAIRE

    Satyajit Chatterjee

    2015-01-01

    Existing quantitative-theoretic models of bankruptcy do not make a distinction between bankruptcy and default. In reality, there is always a period of financial distress between default and a bankruptcy filing. The goal of this paper is to develop a model of the timing of bankruptcy filing that can account for financial distress (the period or state during which a delinquent debtor is being pursued by creditors) and informal bankruptcy (where a delinquent debtor does not file for bankruptcy b...

  8. Bankruptcy Resolution in Japan: Civil Rehabilitation vs. Corporate Reorganization

    OpenAIRE

    Peng Xu

    2004-01-01

    I present evidence on recent bankruptcy resolution and bankruptcy reform in Japan. Prior to bankruptcy, bank lenders are less likely to intervene than they did before. Most bankrupt firms experience abnormal president turnover around bankruptcy filings, regardless types of filings. Priority of claims is less violated in bankruptcy resolution in Japan than in the United States. A Civil Rehabilitation firm spends in bankruptcy substantially shorter than a Corporate Reorganization firm. Also, a ...

  9. Personal Bankruptcy and Credit Supply and Demand

    OpenAIRE

    Reint Gropp; John Karl Scholz; Michelle White

    1996-01-01

    This paper examines how personal bankruptcy and bankruptcy exemptions affect the supply and demand for credit. While generous state-level bankruptcy exemptions are probably viewed by most policymakers as benefitting less-well-off borrowers, our results using data from the 1983 Survey of Consumer Finances suggest they increase the amount of credit held by high-asset households and reduce the availability and amount of credit to low-asset households, conditioning on observable characteristics. ...

  10. Consumer bankruptcy: how unsecured lenders fare

    OpenAIRE

    Mark Furletti

    2003-01-01

    On September 8, 2003, the Payment Cards Center of the Federal Reserve Bank of Philadelphia hosted a workshop on consumer bankruptcy and its effect on unsecured lenders. Professor Melissa Jacoby of Temple University’s School of Law led the workshop. A leading bankruptcy scholar, Jacoby described the current bankruptcy system and the potential impact of Chapter 7 reforms on the rights of unsecured creditors. This paper summarizes Jacoby’s presentation and the ensuing discussion. It offers a bri...

  11. The impact of obesity on consumer bankruptcy.

    Science.gov (United States)

    Guettabi, Mouhcine; Munasib, Abdul

    2015-04-01

    Over the last two decades, both bankruptcy and obesity rates in the U.S. have seen a steady rise. As obesity is one of the leading causes of medical and morbidity related economic costs, its influence on personal bankruptcy is analyzed in this study. Using the National Longitudinal Survey of Youth 1979, we employ a duration model to investigate the relative importance of obesity on the timing of bankruptcy. Even after accounting for possible endogeneity of BMI and controlling for a wide variety of individual and aggregate-level confounding factors, being obese puts one at a greater risk of filing for bankruptcy. PMID:25548081

  12. Bankruptcy cascades in interbank markets.

    Directory of Open Access Journals (Sweden)

    Gabriele Tedeschi

    Full Text Available We study a credit network and, in particular, an interbank system with an agent-based model. To understand the relationship between business cycles and cascades of bankruptcies, we model a three-sector economy with goods, credit and interbank market. In the interbank market, the participating banks share the risk of bad debits, which may potentially spread a bank's liquidity problems through the network of banks. Our agent-based model sheds light on the correlation between bankruptcy cascades and the endogenous economic cycle of booms and recessions. It also demonstrates the serious trade-off between, on the one hand, reducing risks of individual banks by sharing them and, on the other hand, creating systemic risks through credit-related interlinkages of banks. As a result of our study, the dynamics underlying the meltdown of financial markets in 2008 becomes much better understandable.

  13. Bankruptcy Cascades in Interbank Markets

    Science.gov (United States)

    Tedeschi, Gabriele; Mazloumian, Amin; Gallegati, Mauro; Helbing, Dirk

    2012-01-01

    We study a credit network and, in particular, an interbank system with an agent-based model. To understand the relationship between business cycles and cascades of bankruptcies, we model a three-sector economy with goods, credit and interbank market. In the interbank market, the participating banks share the risk of bad debits, which may potentially spread a bank’s liquidity problems through the network of banks. Our agent-based model sheds light on the correlation between bankruptcy cascades and the endogenous economic cycle of booms and recessions. It also demonstrates the serious trade-off between, on the one hand, reducing risks of individual banks by sharing them and, on the other hand, creating systemic risks through credit-related interlinkages of banks. As a result of our study, the dynamics underlying the meltdown of financial markets in 2008 becomes much better understandable. PMID:23300760

  14. THE EVALUATION OF BANKRUPTCY RISK

    OpenAIRE

    CONSTANTIN BAGU; FLORICA BADEA; CRISTINA BOLCAS

    2011-01-01

    Assessment involves carrying out an enterprise financial analysis of the diagnosis, afther that, profitability should cover risks that can occur. To quantify the risk there are many mathematical models that can be used successfully to enterprise capacity analysis to be sound and beat the risk of bankruptcy. A company knows when a more difficult period should not give the achievement of the solvency, financial condition of resistance to economic crisis.

  15. Evaluating the efficiency of a bankruptcy reform

    OpenAIRE

    Gine, Xavier; Love, Inessa

    2009-01-01

    The current financial crisis has pushed many firms to the brink of bankruptcy. A key policy question is thus whether bankruptcy laws are efficient, in the sense of allowing better firms to reorganize while liquidating unviable firms. The sixth in impact series presents lessons from a reform in Colombia that achieved this objective.

  16. The prediction of the bankruptcy risk

    Directory of Open Access Journals (Sweden)

    Gheorghe DUMITRESCU

    2010-04-01

    Full Text Available The study research results of the bankruptcy risk in the actual economic crisis are very weak. This issue is very important for the economy of every country, no matter what their actual development level.The necessity of bankruptcy risk prediction appears in every company,but also in the related institutions like financial companies, investors, suppliers, customers.The bankruptcy risk made and makes the object of many studies of research that want to identify: the moment of the appearance of the bankruptcy, the factors that compete at the reach of this state, the indicators that express the best this orientation (to the bankruptcy.The threats to the firms impose the knowledge by the managers,permanently of the economic-financial situations, of the vulnerable areas and of those with potential of development. Thus, these must identify and gesture the threats that would stop the fulfillment of the established purposes.

  17. BANKRUPTCY RULES AND PROGRESSIVE TAXATION

    OpenAIRE

    Juan de Dios Moreno Ternero; Antonio Villar Notario

    2002-01-01

    This paper explores the relative progressivity of the main bankruptcy rules in taxation problems. A rule F is more progressive than a rule G when the after-tax income vector generated by F Lorenz dominates that generated by G. We focus our analysis on four classical rules (proportional, equal-awards, equal-losses and Talmud) and on the TAL-family, introduced in Moreno-Ternero & Villar (2002). This family depends on a parameter Theta belongs to [0,1] and encompasses the constrained equal award...

  18. Bankruptcy Law: a Mechanism of Governance for Financially Distressed Firms.

    OpenAIRE

    Régis Blazy; Bertrand Chopard; Agnès Fimayer

    2007-01-01

    This paper explores the various governance models for financially distressed firms. We offer a new typology of major bankruptcy models and provide a connection between this bankruptcy law puzzle and the variables depicting the governance of healthy firms in order to shed light on two topics: (1) the factors that the lawyer should consider before removing its national bankruptcy law, and (2) the risks associated with each bankruptcy model according to the economic literature on bankruptcy law....

  19. Utility bankruptcy: the view from the edge

    International Nuclear Information System (INIS)

    Several electric utilities are peering over the edge of an abyss. During the last six months, a number of utilities involved in nuclear power plant construction have run into major financial difficulties as their construction spending approached or exceeded their total assets. In several cases, bankruptcy has been proposed as a possible or even a desirable option in dealing with these difficulties. The question addressed in this article is the potential consequences of a utility bankruptcy, and the use of negotiation to allocate costs once bankruptcy is declared. 3 references, 1 table

  20. Student Loan Bankruptcies: A Chapter 13 Revival?

    Science.gov (United States)

    Pawlik, John M.

    1980-01-01

    Unless legislative or judicial action is taken, the current high volume of student loans will likely encourage frequent utilization of Chapter 13 of the Bankruptcy Reform Act of 1978 for unintended purposes. (Author/IRT)

  1. Credit card borrowing, delinquency, and personal bankruptcy

    OpenAIRE

    Joanna Stavins

    2000-01-01

    Credit card delinquencies and personal bankruptcy rates increased during the mid 1990s, despite the strength of the U.S. economy. Even though per capita income rose during that period, household borrowing grew at an even faster pace. The rise in revolving debt-mainly credit card loans-was especially noticeable, and the increase in personal bankruptcy rates was also substantial. This article examines the relationship between consumer credit card borrowing, delinquency rates, and personal bankr...

  2. Bankruptcy Remoteness and Incentive-compatible Securitization

    OpenAIRE

    G. Chiesa

    2014-01-01

    ecuritization performs two functions. One refers to the risk allocation between the bank and outside investors; the other consists of creating transferable/liquid securities. A key ingredient of liquid/claimtransferability is bankruptcy remoteness - the insolvency of the sponsor (the loan originator) has no impact on the securities. We explore the implications of bankruptcy remoteness on risk allocation and regulatory/policy issues. Under traditional banking, when debt/deposits coexist with ...

  3. The Reverse Talmud Rule for Bankruptcy Problems

    OpenAIRE

    Brink, van den, R.B.A.; Funaki, Y.; Laan, van der, G.

    2008-01-01

    Read also the publication in the 'European Journal of Operational Research' , 2013, 228, 413-417. We introduce a new solution for bankruptcy problems that satisfies weaker versions of the Exemption en Exclusion properties from the literature. Although the principles of Exclusion and Exemption are appealing, the specific conditions under which an agent receives its claim, respectively nothing, seem arbitrary and are inconsistent in the sense that there is no bankruptcy rule that satisfies both...

  4. On Bankruptcy Game Theoretic Interval Rules

    OpenAIRE

    Rodica Branzei; Marco Dall'Aglio; Tijs, Stef H.

    2013-01-01

    Interval bankruptcy problems arise in situations where an estate has to be liquidated among a fixed number of creditors and uncertainty about the amounts of the claims is modeled by intervals. We extend in the interval setting the classical results by Curiel, Maschler and Tijs (1987) that characterize division rules which correspond to solutions of the cooperative bankruptcy game. Finally, we analyze the difficulties with incorporating the uncertainty about the estate.

  5. Bankruptcy Problem Allocations and the Core of Convex Games

    OpenAIRE

    William Olvera-Lopez; Francisco Sanchez-Sanchez; Iván Tellez-Tellez

    2014-01-01

    A well-known result related to bankruptcy problems establishes that a vector is a bankruptcy allocation if and only if it belongs to the core of the associated O’Neill’s bankruptcy game. In this paper we show that this game is precisely the unique TU-game based on convex functions that satisfies the previous result. In addition, given a bankruptcy problem, we show a way for constructing bankruptcy games such that the set of bankruptcy allocations is a subset of their core or their core is a s...

  6. COMPARATIVE ANALYSIS OF EFFICIENCY OF DIAGNOSTIC METHODS BANKRUPTCY UKRAINIAN ENTERPRISES

    OpenAIRE

    Nescorodeva, I.; Pustovgar, S.

    2011-01-01

    Home and foreign experience of diagnostics of bankruptcy of enterprises is Considered, the method of fuzzy sets is adapted for the estimation of probability of bankruptcy STALEMATE the "Kharkov tiled plant".

  7. An Analysis of the Bankruptcy Reorganization Procedure in China

    OpenAIRE

    Fei Leng

    2013-01-01

    This paper analyzes the reorganization procedure introduced into the Chinese bankruptcy system in 2007. It shows that managers devote more effort during the reorganization than before the bankruptcy when the emergence value of the bankrupt firm is substantial. In addition, in the pre-bankruptcy period, managers were shown to input less effort under the new law than under the old law. Finally, the paper demonstrates that the market interest rate under the new bankruptcy law is not necessarily ...

  8. Credit Risk, Default Loss, and the Economics of Bankruptcy

    OpenAIRE

    John F. Crean

    2009-01-01

    The negotiating strategies of parties to a corporate bankruptcy are shaped by the rules and procedures of bankruptcy law. The rules have an asymmetric impact on the debtor and its creditors. To analyze the effect of this asymmetry, the paper develops a model of bankruptcy negotiation based on a binomial process for firm value. The analysis produces five novel results. First, bankruptcy rules are shown to produce incentives which lead to significant deviations from strict priority even when th...

  9. Bankruptcy in America: where are we seven years after reform?

    OpenAIRE

    Helen Mirza

    2012-01-01

    While economic worries, including high unemployment and high rates of foreclosure, persist in America, one indicator that receives relatively little media attention is household bankruptcy. While bankruptcy, particularly Chapter 7 bankruptcy, offers a fresh financial start to the petitioner, certain types of obligations, such as child support, tax liens, and security interests in automobiles and homes, remain the responsibility of the petitioner (i.e., the person seeking bankruptcy protection...

  10. The Theoretical Aspects of Measuring the Costs of Corporate Bankruptcy

    OpenAIRE

    Katarzyna Boratynska

    2014-01-01

    This article presents the issue of costs of enterprise bankruptcy. The purpose of this paper was to overview bibliography concerning the costs of corporate bank-ruptcy. According to literature, the author has pointed out that costs of bankrupt-cy can be divided into different groups, e.g. indirect and direct. The paper indi-cates the following corporate bankruptcy costs allocation criteria: time span, type of proceedings and the accounting perspective at the microeconomic level of analysis. T...

  11. Bankruptcy Prediction: A Survey on Evolution, Critiques, and Solutions

    OpenAIRE

    Fejér-Király Gergely

    2015-01-01

    After the economic crisis and the BASEL agreement, the bankruptcy prediction research has evolved substantially due to its importance in corporate finance. This paper summarizes the short history of bankruptcy prediction from the beginning until quite recently. First, it presents a short summary of bankruptcy prediction evolution pointing to the most used models. Then, it provides a summary of the most cited papers that discuss the evolution of bankruptcy prediction and of those papers that h...

  12. Do student loan borrowers opportunistically default? Evidence from bankruptcy reform

    OpenAIRE

    Darolia, Rajeev; Ritter, Dubravka

    2015-01-01

    Bankruptcy reform in 2005 eliminated debtors’ ability to discharge private student loan debt in bankruptcy. This law aimed to reduce costly defaults by diminishing the perceived incentive of some private student loan borrowers to declare bankruptcy even if they had sufficient income to service their debt. Using a unique, nationally representative sample of anonymized credit bureau files, we examine the bankruptcy filing and delinquency rates of private student loan borrowers in response to th...

  13. Additivity in bankruptcy problems and in allocation problems

    OpenAIRE

    Gustavo Bergantiños; Luciano Méndez-Naya

    2001-01-01

    We study the property of additivity in bankruptcy problems and in allocation problems. In bankruptcy problems we use this property to characterize the Talmudic rule proposed by Rabbi Ibn Ezra. Moreover we generalize this rule to every bankruptcy problem. Again, using additivity we characterize the rights egalitarian solution in allocation problems.

  14. Statistical Analysis of Processes of Bankruptcy is in Ukraine

    OpenAIRE

    Berest Marina Nikolaevna

    2012-01-01

    The statistical analysis of processes of bankruptcy in Ukraine is conducted. Quantitative and high-quality indexes, characterizing efficiency of functioning of institute of bankruptcy of enterprises, are analyzed; the analysis of processes, related to bankruptcy of enterprises, being in state administration is conducted.

  15. Deciding if Bankruptcy is an Option for You

    OpenAIRE

    Hayhoe, Celia Ray; Goebel, Karen P.

    2009-01-01

    When you have incurred more debt than you think you can reasonably repay, bankruptcy may be a way to debt relief. Filing for bankruptcy, however, brings long-term consequences for your credit rating. This is an overview of those benefits and consequences of bankruptcy.

  16. Bankruptcy: Past Puzzles, Recent Reforms, and the Mortgage Crisis

    OpenAIRE

    White, Michelle J.

    2008-01-01

    This paper discusses four bankruptcy-related policy issues. First, what is the economic rationale for having a bankruptcy procedure at all and what defines an economically efficient bankruptcy procedure? Second, why did the number of U.S. bankruptcy filings increase so dramatically between 1980 and 2005? Third, a major bankruptcy reform went into effect in the U.S. in 2005--what did it do and how did it affect credit and mortgage markets? Finally, the paper discusses the mortgage crisis, the ...

  17. 7 CFR 1779.85 - Bankruptcy.

    Science.gov (United States)

    2010-01-01

    ... loan debt and all the collateral securing it in bankruptcy proceedings. These responsibilities include... initiate the repurchase of the unpaid guaranteed portion of the loan from the holder. If the lender is the...-house expenses of the lender. (h) Reconciliation. In the event that the estimated loss payment...

  18. Bankruptcy regimes and gambling on resurrection

    Czech Academy of Sciences Publication Activity Database

    Knot, Ondřej; Vychodil, Ondřej

    -, č. 290 (2006), s. 1-66. ISSN 1211-3298 R&D Projects: GA MŠk LC542 Institutional research plan: CEZ:AV0Z70850503 Keywords : corporate bankruptcy * debt contracts * monitoring Subject RIV: AH - Economics http://www.cerge-ei.cz/pdf/wp/Wp290.pdf

  19. What drives the optimal bankruptcy law design?

    Czech Academy of Sciences Publication Activity Database

    Knot, Ondřej; Vychodil, Ondřej

    2005-01-01

    Roč. 55, 3-4 (2005), s. 110-123. ISSN 0015-1920 Institutional research plan: CEZ:AV0Z70850503 Keywords : bankruptcy * capital and ownership structure Subject RIV: AH - Economics Impact factor: 0.173, year: 2005

  20. 76 FR 76437 - Notice of Lodging of a Bankruptcy Settlement Agreement Pursuant to the Comprehensive...

    Science.gov (United States)

    2011-12-07

    ... of Lodging of a Bankruptcy Settlement Agreement Pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act Notice is hereby given that a proposed Bankruptcy Settlement Agreement between the debtors and the Environmental Protection Agency (hereinafter ``Bankruptcy Settlement...

  1. Factors Associated with Suicide and Bankruptcy in Japanese Pathological Gamblers.

    Science.gov (United States)

    Komoto, Yasunobo

    2014-01-01

    Pathological gambling can lead to a number of deleterious consequences, including bankruptcy and suicide. The present study examined the correlation between clinical characteristics of pathological gamblers and history of bankruptcy and suicide attempts. Subjects (141; 124 male) were outpatients at a psychiatric hospital from 2007 to 2010. Demographic and medical variables including age, gender, age of gambling onset, psychiatric complications, suicide attempts, and bankruptcy were assessed. Positive correlations were observed between suicide attempt and female gender, family history of addiction, and unemployment (p bankruptcy (p bankruptcy. Results suggest that treatment for pathological gambling should address the patient's past experience with addict family members, especially if the patient reports a history of bankruptcy or suicidal ideation. PMID:25285061

  2. A Predictive System for detection of Bankruptcy using Machine Learning techniques

    OpenAIRE

    Kalyan Nagaraj; Amulyashree Sridhar

    2015-01-01

    Bankruptcy is a legal procedure that claims a person or organization as a debtor. It is essential to ascertain the risk of bankruptcy at initial stages to prevent financial losses. In this perspective, different soft computing techniques can be employed to ascertain bankruptcy. This study proposes a bankruptcy prediction system to categorize the companies based on extent of risk. The prediction system acts as a decision support tool for detection of bankruptcy Keywords: Bankruptcy, soft compu...

  3. What do we know about Chapter 13 personal bankruptcy filings?

    OpenAIRE

    Wenli Li

    2007-01-01

    Since 1980, the number of households filing for bankruptcy has more than tripled. This drastic increase in personal bankruptcy filings led to substantial debate among economists and policymakers. That debate subsequently resulted in the enactment of extensive reforms in 2005 when Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act. Ultimately, the rationale for this legislation is the presumption that Chapter 13 leads to more appropriate outcomes compared with either C...

  4. Bankruptcy, criminal legal aspects and disengagement from fraud

    OpenAIRE

    Кришевич, Ольга Володимирівна; Рощина, Інна Олександрівна

    2015-01-01

    The paper defines the basic principles of article concerning bankruptcy, disadvantages and differences that it conveys, differences from fraud. The experience of other states with regard to improving the national legislation on criminal liability and practice is outlined. English abstract О.V. Krishevich, I.A. Roshchina Bankruptcy, criminal legal aspects and disengagement from fraud Today the relations concerning bankruptcy and of providing creditors' property rights are important legal inst...

  5. Hedge Funds as Liquidity Providers: Evidence from the Lehman Bankruptcy

    OpenAIRE

    Aragon, George O.; Philip E. Strahan

    2009-01-01

    Using the September 15, 2008 bankruptcy of Lehman Brothers as an exogenous shock to funding costs, we show that hedge funds act as liquidity providers. Hedge funds using Lehman as prime broker could not trade after the bankruptcy, and these funds failed twice as often as otherwise-similar funds after September 15 (but not before). Stocks traded by the Lehman-connected hedge funds in turn experienced greater declines in market liquidity following the bankruptcy than other stocks; and, the effe...

  6. Factors Associated with Suicide and Bankruptcy in Japanese Pathological Gamblers

    OpenAIRE

    Komoto, Yasunobo

    2014-01-01

    Pathological gambling can lead to a number of deleterious consequences, including bankruptcy and suicide. The present study examined the correlation between clinical characteristics of pathological gamblers and history of bankruptcy and suicide attempts. Subjects (141; 124 male) were outpatients at a psychiatric hospital from 2007 to 2010. Demographic and medical variables including age, gender, age of gambling onset, psychiatric complications, suicide attempts, and bankruptcy were assessed. ...

  7. Did bankruptcy reform cause mortgage default rates to rise?

    OpenAIRE

    Wenli Li; Michelle J. White; Ning S. Zhu

    2010-01-01

    This paper argues that the U.S. bankruptcy reform of 2005 played an important role in the mortgage crisis and the current recession. When debtors file for bankruptcy, credit card debt and other types of debt are discharged - thus loosening debtors' budget constraints. Homeowners in financial distress can therefore use bankruptcy to avoid losing their homes, since filing allows them to shift funds from paying other debts to paying their mortgages. But a major reform of U.S. bankruptcy law in 2...

  8. Did Bankruptcy Reform Cause Mortgage Default to Rise?

    OpenAIRE

    Wenli Li; Michelle J. White; Ning Zhu

    2010-01-01

    This paper argues that the U.S. bankruptcy reform of 2005 played an important role in the mortgage crisis and the current recession. When debtors file for bankruptcy, credit card debt and other types of debt are discharged--thus loosening debtors' budget constraints. Homeowners in financial distress can therefore use bankruptcy to avoid losing their homes, since filing allows them to shift funds from paying other debts to paying their mortgages. But a major reform of U.S. bankruptcy law in 20...

  9. Keeping potentially responsible parties (PRPs) out of bankruptcy courts

    International Nuclear Information System (INIS)

    In an era when the cost of compliance with state and federal environmental laws is rapidly rising, sometimes entities, such as operators of waste sites, are unable to pay these and other operating costs and are forced to file for bankruptcy. Citing Midlantic Nat'l Bank v. N.J. Dep's of Envtl. Protection and state environmental laws, bankruptcy trustees may be suing PRPs in bankruptcy courts to share the costs to clean up debtors' waste sites. This article suggests strategies by which PRPs can avoid litigating such lawsuits in the bankruptcy courts and instead resolve them before state and/or federal forums - where they properly belong

  10. The Lehman Brothers Effect and Bankruptcy Cascades

    OpenAIRE

    Pawe{\\l} Sieczka; Didier Sornette; Janusz A. Ho{\\l}yst

    2010-01-01

    Inspired by the bankruptcy of Lehman Brothers and its consequences on the global financial system, we develop a simple model in which the Lehman default event is quantified as having an almost immediate effect in worsening the credit worthiness of all financial institutions in the economic network. In our stylized description, all properties of a given firm are captured by its effective credit rating, which follows a simple dynamics of co-evolution with the credit ratings of the other firms i...

  11. Should Derivatives be Privileged in Bankruptcy?

    OpenAIRE

    Patrick Bolton; Martin Oehmke

    2011-01-01

    Derivative contracts, swaps, and repos enjoy "super-senior" status in bankruptcy: they are exempt from the automatic stay on debt and collateral collection that applies to virtually all other claims. We propose a simple corporate finance model to assess the effect of this exemption on firms' cost of borrowing and incentives to engage in swaps and derivatives transactions. Our model shows that while derivatives are value-enhancing risk management tools, super-seniority for derivatives can lead...

  12. PERSONAL BANKRUPTCY AND THE ROMANIAN REALITIES

    Directory of Open Access Journals (Sweden)

    Mihaela Condrache

    2016-01-01

    Full Text Available Bankruptcy is defined as the legal situation in which an individual, a company or an institution cannot meet outstanding liabilities, which are superior in value compared to available assets. Personal bankruptcy refers to the situation described above in the case of individuals. This highly important legal and economic institution was long ago settled in the United States of America, United Kingdom, France, Germany, Japan, and recently in former communist countries such as Poland, Latvia, Estonia, and Lithuania, existing throughout the EU, except for Romania, Bulgaria and Hungary. In December 2015, in Romania, the Personal Bankruptcy Law is to come into force and this article focuses on the main aspects of the three steps procedure comprised in it as well as on the advantages and disadvantages from all involved parts perspective, that is: individual debtors, Banks as creditors and state institutions as third parties highlighting the main changes that are to happen both for individuals as well as for the society as a whole.

  13. A Note on Risk Acceptance, Bankruptcy Avoidance and Riskiness Measures

    OpenAIRE

    Chamorro Elosua, Arritokieta; Usategui Díaz de Otalora, José María

    2013-01-01

    In this work we clarify the relationships between riskiness, risk acceptance and bankruptcy avoidance. We distinguish between the restriction on the current wealth required to make a gamble acceptable to the decision maker and the restriction on the current wealth required to guarantee no bankruptcy if a gamble is accepted. We focus on the measure of riskiness proposed by Foster and Hart.

  14. USE OF DISCRIMINANT ANALYSIS IN ESTIMATING THE RISK OF BANKRUPTCY OF MEAT INDUSTRY ENTERPRISES

    OpenAIRE

    Feliks Wysocki; Agnieszka Kozera

    2012-01-01

    The article presents the financial situation and risk of bankruptcy enterprises in the meat in-dustry. To assess the risk of bankruptcy meat industry companies discriminatory models analysis was applied. Studies have shown that not all of the selected Polish discriminatory models effectively indicate companies bankruptcy in meat industry. Therefore a model was built to assess the risk of bankruptcy for those companies.

  15. The Lehman Brothers Bankruptcy A: Overview

    OpenAIRE

    Rosalind Z. Wiggins; Thomas Piontek; Andrew Metrick

    2014-01-01

    On September 15, 2008, Lehman Brothers Holdings, Inc., the fourth-largest U.S. investment bank, sought Chapter 11 protection, initiating the largest bankruptcy proceeding in U.S. history. The demise of the 164-year old firm was a seminal event in the global financial crisis. Under the direction of its long-time Chief Executive Officer Richard Fuld, Lehman had been very successful pursuing a high-leverage, high-risk business model that required it to daily raise billions of dollars to fund its...

  16. Bankruptcy potential threatens decommissioning funds, says NRC

    International Nuclear Information System (INIS)

    Electric utilities and the Nuclear Regulatory Commission (NRC) disagreed at an America Nuclear Society seminar on how reactor decommissioning should be financed. Industry and state regulators claim it should be handled by standard depreciation methods without involving the NRC, which argues that it must guard against safety risks from industry bankruptices and premature decommissioning. Both sides agreed that funds must be collected, but disagreed on the best method. Their options include the deposit method, external sinking fund, internal reserve, and insurance or surety bond. The NRC feels that too many utilities face possible bankruptcy unrelated to decommissioning or accidents, and that this possibility should outweigh other considerations. 1 table

  17. A PREDICTIVE SYSTEM FOR DETECTION OF BANKRUPTCY USING MACHINE LEARNING TECHNIQUES

    Directory of Open Access Journals (Sweden)

    Kalyan Nagaraj

    2015-01-01

    Full Text Available Bankruptcy is a legal procedure that claims a person or organization as a debtor. It is essential to ascertain the risk of bankruptcy at initial stages to prevent financial losses. In this perspective, different soft computing techniques can be employed to ascertain bankruptcy. This study proposes a bankruptcy prediction system to categorize the companies based on extent of risk. The prediction system acts as a decision support tool for detection of bankruptcy

  18. The Role of Information in Consumer Debt and Bankruptcy

    OpenAIRE

    Sanchez, Juan M.

    2008-01-01

    Consumer debt and bankruptcy are central issues today because of their explosive trends over the last 20 years in the U.S. economy. However, there is no convincing explanation for these facts. A drop in information costs, a potential cause, has not been evaluated mainly because there is no quantitative theory of consumer debt and bankruptcy where the cost of information plays an important role. This paper provides such a theory and quantifies how much of the rise in debt and bankruptcy can be...

  19. Bankruptcy – the consequence of defective bank management

    Directory of Open Access Journals (Sweden)

    Imola DRIGA

    2009-12-01

    Full Text Available Bank failure is the result of a defective management in banking leading the bank to a stage of bankruptcy, which means that the insolvent bank is going to be closed by the banking authority. In general, the banking sector is viewed as more vulnerable to contagion than other industries since banks are viewed as more susceptible to failures. Thus, the paper addresses the issue of bank insolvency as an extreme consequence of materialized risks, resulting in a payment disability for the bank. The paper presents the causes and consequences of bankruptcy and analysis the situation of bankruptcies in the Romanian banking system which was confronted with a number of bankruptcies beginning with 1994 and involving several significant financial institutions.

  20. On the Bankruptcy Situations and the Alexia Value

    OpenAIRE

    Alparslan Gök, S. Z.; Sarıarslan, A.

    2012-01-01

    The main result of this paper is to show that the three ancient bankruptcy situations from the 2000-year-old Babylonian Talmud can be solved by using the average lexicographic value (Alexia) from cooperative game theory.

  1. Evidence on the Effect of US Consumer Bankruptcy Exemptions

    OpenAIRE

    2004-01-01

    Bankruptcy (defaulting on one's debts) acts as insurance if it allows default in cases of negative income shocks. However, if debts are not fully recoverable, lenders may instead react by limiting the amount that they allow households to borrow. This upper borrowing limit will increase as the punishment for defaulting increases. The US provides a natural test for these effects since rules about which assets may be kept by the debtor (the exemptions) when filing for bankruptcy differ dramatica...

  2. The impact of business groups on bankruptcy prediction modeling

    OpenAIRE

    Dewaelheyns, Nico; Van Hulle, Cynthia

    2004-01-01

    The bankruptcy prediction literature generally ignores corporate ownership and assumes companies are independent economic entities. In Continental Europe this latter assumption does not hold, due to the importance of business groups. Using a sample of mostly non-quoted Belgian medium and large sized companies, we show that the predictive power of several accounting ratios that are commonly used in bankruptcy prediction models (e.g. performance, leverage, liquidity and efficiency) is different...

  3. Residential Mortgage Default and Consumer Bankruptcy: Theory and Empirical Evidence

    OpenAIRE

    Michelle White; Wenli Li

    2011-01-01

    In this paper we develop a theory where homeowners make joint decisions in financial distress as whether to file for bankruptcy or default on their mortgages. The theory models explicitly institutional details, the federal bankruptcy law and the state foreclosure laws, that govern the two default events separately and their interactions. In particular, we derive regions (defined by households asset, liability, and income positions) where homeowners default on both loans, on one of them, and o...

  4. Lorenz and lexicographic maximal allocations for bankruptcy problems

    OpenAIRE

    Arin, Javier; Benito Ostolaza, Juan Miguel

    2012-01-01

    This paper investigates the use of egalitarian criteria to select allocations in bankruptcy problems. In our work, we characterize the sets of Lorenz maximal elements for these problems. We show that the allocation selected by the Proportional Rule is the only allocation that belongs to all these Lorenz maximal sets. We prove that the Talmud Rule selects the lexicographic maximal element within a certain set. We introduce and analyze a new sharing rule for bankruptcy problems that shares stro...

  5. Bankruptcy Risk, Limited Liability and Imperfectly Enforced Emissions Taxes

    OpenAIRE

    John Stranlund; Wei Zhang

    2009-01-01

    Under reasonable conditions, noncompliance with an emissions tax has no effect on environmental outcomes or the efficient allocation of individual emissions control. Moreover, differences in individual tax violations are independent of firm-level differences. All of these desirable characteristics disappear when some firms under an emissions tax risk bankruptcy. The combination of imperfect enforcement, bankruptcy risk, and limited liability in bankrupt states produces an inefficient distribu...

  6. An analysis of Lehman Brothers bankruptcy and Repo 105 transactions

    OpenAIRE

    Charles Hines; Jerry Kreuze; Sheldon Langsam

    2011-01-01

    Purpose – The purpose of this paper is to investigate the bankruptcy of Lehman Brothers, with particular focus on its use of Repo 105 transactions. Design/methodology/approach – The use of the Lehman's bankruptcy report produced in part by Anton R. Valukas was used as a basis to explain how Lehman maintained acceptable leverage ratios through the use of Repo 105 transactions to paint a better picture of its financial position than actually existed. Findings – The study concludes that Lehman's...

  7. Can orderly liquidation solve the problems of bailouts and bankruptcies?

    OpenAIRE

    Betty Joyce Nash; Sabrina Pellerin; John R. Walter

    2012-01-01

    In response to the financial crisis of 2007–09, Congress created the Orderly Liquidation Authority (OLA), a new regime for winding down systemically important financial institutions (SIFIs) that become troubled. The OLA provisions address two conflicting goals: mitigating threats to the financial system associated with bankruptcy and minimizing moral hazard associated with government bailouts. This Economic Brief compares OLA provisions to bankruptcy procedures. Although the OLA process could...

  8. THE EFFECTS OF INCLUDING BANKRUPTCY ON DYNAMIC INVESTMENT DECISIONS

    OpenAIRE

    Frank S. Novak; Schnitkey, Gary D.

    1994-01-01

    This article evaluates the effects of including the costs of bankruptcy in a dynamic model of off-farm investment decisions using a stochastic dynamic programming (SDP) model which incorporates the stochastic dynamic nature of investment returns and the interrelationships between financial structure and investment decisions. Our results suggest that in the presence of bankruptcy, optimal investment decisions are affected by financial structure and financial market conditions. Ignoring bankrup...

  9. A Concede-and-Divide Rule for Bankruptcy Problems

    OpenAIRE

    Quant, M.; Borm, P.E.M.; Maaten, R.

    2005-01-01

    The concede-and-divide rule is a basic solution for bankruptcy problems with two claimants.An extension of the concede-and-divide rule to bankruptcy problems with more than two claimants is provided.This extension not only uses the concede-and-divide principle in its procedural definition, but also preserves the main properties of the concede-and-divide rule.

  10. A Real Options Analysis on Corporate Endogenous Bankruptcy

    Institute of Scientific and Technical Information of China (English)

    XianghuaLiu; ChulinLi

    2004-01-01

    This paper adopts the real options approach to study the decision-making of corporate endogenous bankruptcy and debt reorganization in a risk-neutral framework, while understanding corporate bankruptcy and debt reorganization as the options held by equity holders and the creditor. After obtaining the values of contingent claims on the corporate assets, the paper analyzes the bankruptcy decisions of different levered corporate. With standard debt contract and under absolute priority rule, the bankruptcy times maximizing the equity value are not consistent with those maximizing the corporate value: the high levered corporate will inefficiently bankrupt early while the low levered corporate will inefficiently bankrupt late. If debt reorganization or creditor concession isn't allowed, liquidation often leads to the loss in value. But if strategic default or deviation from absolute priority rule is allowed, the decision maximizing the equity value will be consistent with that maximizing the corporate value. Debt reorganization has significant economic implication: for high levered corporate or low levered corporate, with debt reorganization or deviation of the absolute priority rule permitted, postponed or hastened bankruptcy can be avoided, hence,the bankruptcy trigger chosen by equity holders to maximize the equity value is efficient decision without value losses.

  11. Resolving conflicts over trans-boundary rivers using bankruptcy methods

    Science.gov (United States)

    Zarezadeh, M.; Madani, K.; Morid, S.

    2013-11-01

    A bankruptcy approach is proposed for resolving trans-boundary rivers conflicts in which the total water demand or claim of the riparian parties is more than the available water. Bankruptcy solution methods can allocate the available water to the conflicting parties with respect to their claims. Four bankruptcy rules are used here to allocate the available water to the riparian parties. Given the non-uniform spatial and temporal distribution of water across river basins, bankruptcy optimization models are proposed to allocate water based on these rules with respect to time sensitivity of water deliveries during the planning horizon. Once allocation solutions are developed, their acceptability and stability must be evaluated. Thus, a new stability index method is developed for evaluating the acceptability of bankruptcy solutions. To show how the bankruptcy framework can be helpful in practice, the suggested methods are applied to a real-world tarns-boundary river system with eight riparians under various hydrologic regimes. Stability analysis based on the proposed stability index method suggests that the acceptability of allocation rules is sensitive to hydrologic conditions and demand values. This finding has an important policy implication suggesting that fixed allocation rules and trans-boundary treaties may not be reliable for securing cooperation over trans-boundary water resources as they are vulnerable to changing socio-economic and climatic conditions as well as hydrologic non-stationarity.

  12. Costs and Recovery Rates in the Dutch Liquidation-Based Bankruptcy System

    OpenAIRE

    Couwenberg, Oscar; de Jong, Abe

    2007-01-01

    textabstractWe present evidence on the efficiency of the resolution of financial distress in bankruptcy in The Netherlands. We employ a unique data set based on the files of the trustees and court offices, which includes the characteristics of the firms before and in the bankruptcy procedures, the details of the bankruptcy process and the outcomes. This data allows us to measure the costs and recovery rates in the Dutch liquidation-based bankruptcy system, and to investigate the determinants ...

  13. Evaluating the Welfare Effects of International Bankruptcy Regimes in a Political Economy Model

    OpenAIRE

    Burcu Eyigungor; Satyajit Chatterjee

    2013-01-01

    We evaluate the welfare benefits of international bankruptcy regimes in a political economy model of debt and default. We show that the socially optimal bankruptcy regime is likely to feature lower restructuring costs than the politically optimal bankruptcy regime. To the extent the current regime reflects the political preferences of borrowing countries, a case can be made for an international bankruptcy regime aimed at reducing (but not eliminating) restructuring costs.

  14. Optimal financial structure, bankruptcy risk and the right to a new beginning

    OpenAIRE

    Cornelia NIŢU

    2009-01-01

    Starting from the need to optimize the financial structure of the enterprise, the article aims to review a few concepts related to financial structure and bankruptcy risk, the presentation of the bankruptcy risk analysis based on assets balance sheet, liquidity ratios and last, but not least, scoring method. It also presents some points of view regarding the current economic crisis and the evolution of national and international level approaches about bankruptcy and the risk of bankruptcy.

  15. Is Cash Auction Procedure a Bargain? Evidence from U.S. Bankruptcy Courts

    OpenAIRE

    Ning Zhu

    2003-01-01

    This paper offers large sample evidence on bankruptcy costs for more than 800 Chapter 7 and Chapter 11 cases in two U.S. bankruptcy courts. For the comprehensive sample comprising mostly of small and private firms, bankruptcy costs account for about three percent of pre-filing book asset values for both chapters. The time that firms spend in bankruptcy procedure averages about 23 months, also similar between Chapter 7 and Chapter 11 cases. Contrary to previous belief, Chapter 7 procedure, whi...

  16. Bankruptcy open to an arrangement as a way of resolving company’s financial crisis

    OpenAIRE

    Katarzyna D¿egan

    2013-01-01

    The paper presents theoretical and practical course of bankruptcy open to an arrangement. The case study presents stages of bankruptcy process and the restructuring opportunities for the company. It also contains a comparative analysis of bankruptcy open to an arrangement with liquidation bankruptcy. This analysis demonstrates the validity of the first solution and shows that continuation the company’s operations in the market and its further development are possible despite the existence of ...

  17. Altman Model and Bankruptcy Profile of Islamic Banking Industry: A Comparative Analysis on Financial Performance

    OpenAIRE

    Amin Jan; Maran Marimuthu

    2015-01-01

    The purpose of this paper is to examine the bankruptcy profile of Islamic banking industry and perform a comparative analysis of their financial characteristics with regards to bankruptcy. This paper applied Altman model on top five Islamic banking countries by global Islamic-banking assets with the objective to examine their bankruptcy profile, while ANOVA Post Hoc Scheffe test is applied to perform a comparative analysis on their financial characteristics relating to bankruptcy. From the se...

  18. SCORING ASSESSMENT AND FORECASTING MODELS BANKRUPTCY RISK OF COMPANIES

    Directory of Open Access Journals (Sweden)

    SUSU Stefanita

    2014-07-01

    Full Text Available Bankruptcy risk made the subject of many research studies that aim at identifying the time of the bankruptcy, the factors that compete to achieve this state, the indicators that best express this orientation (the bankruptcy. The threats to enterprises require the managers knowledge of continually economic and financial situations, and vulnerable areas with development potential. Managers need to identify and properly manage the threats that would prevent achieving the targets. In terms of methods known in the literature of assessment and evaluation of bankruptcy risk they are static, functional, strategic, and scoring nonfinancial models. This article addresses Altman and Conan-Holder-known internationally as the model developed at national level by two teachers from prestigious universities in our country-the Robu-Mironiuc model. Those models are applied to data released by the profit and loss account and balance sheet Turism Covasna company over which bankruptcy risk analysis is performed. The results of the analysis are interpreted while trying to formulate solutions to the economic and financial viability of the entity.

  19. 75 FR 65381 - Hearings of the Judicial Conference Committees on Bankruptcy, Criminal Rules

    Science.gov (United States)

    2010-10-22

    ... UNITED STATES Hearings of the Judicial Conference Committees on Bankruptcy, Criminal Rules AGENCY: Advisory Committee on Bankruptcy Rules and Advisory Committee on Criminal Rules, Judicial Conference of the... on Bankruptcy Rules and the Advisory Committee on Criminal Rules have proposed amendments to...

  20. Student Loans and Bankruptcies: What Can a University-Creditor Do?

    Science.gov (United States)

    Rieder, Robert W.

    1989-01-01

    Discusses current bankruptcy law relating to the student loan debtor and outlines permissible activities of a university with respect to such a debtor during and after the bankruptcy proceeding. Advises universities to develop a set of guidelines and procedures for dealing with student loan debtors who file for bankruptcy relief. (MLF)

  1. 77 FR 55525 - Open Meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee

    Science.gov (United States)

    2012-09-10

    ... Internal Revenue Service Open Meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project... meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee will be conducted. The.... (1988) that a meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee will...

  2. 77 FR 21155 - Open Meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee

    Science.gov (United States)

    2012-04-09

    ... Internal Revenue Service Open Meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project... meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee will be conducted. The...) that a meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee will be...

  3. 77 FR 2611 - Open Meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee

    Science.gov (United States)

    2012-01-18

    ... Internal Revenue Service Open Meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project... meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee will be conducted. The....S.C. App. (1988) that a meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance...

  4. 77 FR 37101 - Open Meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee

    Science.gov (United States)

    2012-06-20

    ... Internal Revenue Service Open Meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project... meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee will be conducted. The...) that a meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee will be...

  5. 77 FR 30592 - Open Meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee

    Science.gov (United States)

    2012-05-23

    ... Internal Revenue Service Open Meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project... meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee will be conducted. The... Act, 5 U.S.C. App. (1988) that a meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance...

  6. 77 FR 49828 - Hearings of the Judicial Conference Advisory Committees on Rules of Appellate, Bankruptcy, and...

    Science.gov (United States)

    2012-08-17

    ... UNITED STATES Hearings of the Judicial Conference Advisory Committees on Rules of Appellate, Bankruptcy... Appellate, Bankruptcy, and Criminal Procedure, and the Federal Rules of Evidence; Judicial Conference of the... on Rules of Appellate, Bankruptcy, and Criminal Procedure, and Rules of Evidence have...

  7. 77 FR 61054 - Open Meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee

    Science.gov (United States)

    2012-10-05

    ... Internal Revenue Service Open Meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project... meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee will be conducted. The.... (1988) that a meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee will...

  8. 76 FR 27089 - Meeting of the Judicial Conference Advisory Committee on Rules of Bankruptcy Procedure

    Science.gov (United States)

    2011-05-10

    ... UNITED STATES Meeting of the Judicial Conference Advisory Committee on Rules of Bankruptcy Procedure AGENCY: Judicial Conference of the United States Advisory Committee on Rules of Bankruptcy Procedure. ACTION: Notice of Open Meeting. SUMMARY: The Advisory Committee on Rules of Bankruptcy Procedure...

  9. 77 FR 12077 - Meeting of the Judicial Conference Advisory Committee on Rules of Bankruptcy Procedure

    Science.gov (United States)

    2012-02-28

    ... UNITED STATES Meeting of the Judicial Conference Advisory Committee on Rules of Bankruptcy Procedure AGENCY: Judicial Conference of the United States Advisory Committee on Rules of Bankruptcy Procedure. ACTION: Notice of open meeting. SUMMARY: The Advisory Committee on Rules of Bankruptcy Procedure...

  10. 77 FR 8328 - Open Meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee

    Science.gov (United States)

    2012-02-14

    ... Internal Revenue Service Open Meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project... meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee will be conducted. The...) that a meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee will be...

  11. 76 FR 77891 - Open Meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee

    Science.gov (United States)

    2011-12-14

    ... Internal Revenue Service Open Meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project... meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee will be conducted. The....C. App. (1988) that a meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project...

  12. 77 FR 64829 - Notice of Filing of Proposed Settlement Agreement Resolving Bankruptcy Proofs of Claim Relating...

    Science.gov (United States)

    2012-10-23

    ... of Filing of Proposed Settlement Agreement Resolving Bankruptcy Proofs of Claim Relating to the... the United States and others, with the United States Bankruptcy Court for the District of Delaware in... Pittsburgh at 84 Montour Road, Coraopolis, Pennsylvania. Debtors filed bankruptcy petitions on September...

  13. 77 FR 47165 - Open Meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee

    Science.gov (United States)

    2012-08-07

    ... Internal Revenue Service Open Meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project... meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee will be conducted. The.... (1988) that a meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee will...

  14. 76 FR 52349 - Hearings of the Judicial Conference Advisory Committees on Rules of Appellate, Bankruptcy, Civil...

    Science.gov (United States)

    2011-08-22

    ... UNITED STATES Hearings of the Judicial Conference Advisory Committees on Rules of Appellate, Bankruptcy... Appellate, Bankruptcy, Civil, and Criminal Procedure, and the Federal Rules of Evidence, Judicial Conference... Committees on Rules of Appellate, Bankruptcy, Civil, and Criminal Procedure, and Rules of Evidence...

  15. 77 FR 40410 - Open Meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee

    Science.gov (United States)

    2012-07-09

    ... Internal Revenue Service Open Meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project... meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee will be conducted. The.... (1988) that a meeting of the Taxpayer Advocacy Panel Bankruptcy Compliance Project Committee will...

  16. Neuro-fuzzy modeling in bankruptcy prediction

    Directory of Open Access Journals (Sweden)

    Vlachos D.

    2003-01-01

    Full Text Available For the past 30 years the problem of bankruptcy prediction had been thoroughly studied. From the paper of Altman in 1968 to the recent papers in the '90s, the progress of prediction accuracy was not satisfactory. This paper investigates an alternative modeling of the system (firm, combining neural networks and fuzzy controllers, i.e. using neuro-fuzzy models. Classical modeling is based on mathematical models that describe the behavior of the firm under consideration. The main idea of fuzzy control, on the other hand, is to build a model of a human control expert who is capable of controlling the process without thinking in a mathematical model. This control expert specifies his control action in the form of linguistic rules. These control rules are translated into the framework of fuzzy set theory providing a calculus, which can stimulate the behavior of the control expert and enhance its performance. The accuracy of the model is studied using datasets from previous research papers.

  17. The Lehman Brothers effect and bankruptcy cascades

    Science.gov (United States)

    Sieczka, P.; Sornette, D.; Holyst, J. A.

    2011-08-01

    Inspired by the bankruptcy of Lehman Brothers and its consequences on the global financial system, we develop a simple model in which the Lehman default event is quantified as having an almost immediate effect in worsening the credit worthiness of all financial institutions in the economic network. In our stylized description, all properties of a given firm are captured by its effective credit rating, which follows a simple dynamics of co-evolution with the credit ratings of the other firms in our economic network. The dynamics resembles the evolution of Potts spin-glass with external global field corresponding to a panic effect in the economy. The existence of a global phase transition, between paramagnetic and ferromagnetic phases, explains the large susceptibility of the system to negative shocks. We show that bailing out the first few defaulting firms does not solve the problem, but does have the effect of alleviating considerably the global shock, as measured by the fraction of firms that are not defaulting as a consequence. This beneficial effect is the counterpart of the large vulnerability of the system of coupled firms, which are both the direct consequences of the collective self-organized endogenous behaviors of the credit ratings of the firms in our economic network.

  18. Control during corporate crisis: asbestos and the Manville bankruptcy.

    Science.gov (United States)

    Delaney, K J

    1991-01-01

    Chapter 11 bankruptcy provides an opportunity for addressing issues of power and control during corporate crisis. A broad notion of power is essential in understanding the complex events that led to the Chapter 11 filing of the Manville Corporation, formerly the nation's leading asbestos manufacturer. The theory of finance hegemony places this case in an entirely new light by taking into account the power of the financial community. The Manville bankruptcy illuminates several mechanisms by which this hegemony operates. From this perspective, Chapter 11 bankruptcy is viewed as a choice made from a set of options severely constrained by other powerful institutions, rather than a result of managerial incompetence or market failure. PMID:1769758

  19. Multicriteria Early Warning System of Enterprises against the Bankruptcy Risk

    Directory of Open Access Journals (Sweden)

    Tomasz Korol

    2010-12-01

    Full Text Available This article is devoted to the issue of forecasting the bankruptcy risk of the enterprises. In the article author compares the effectiveness of multicriteria early warning system with the traditional discriminant analysis model of forecasting the risks of bankruptcy of companies. In the conducted research author has used data on 185 companies listed on the Warsaw Stock Exchange Market. This population of firms was divided into learning and testing setdata. Each company has been analyzed using the absolute values of 14 financial ratios and the dynamics of change of these ratios. Additionally, author has used the macroeconomic variables in developed multicriteria system. The author’s developed models are characterized by high efficiency. These studies are the first attempt to use fuzzy logic to predict the bankruptcy of companies in Poland and one of the first in the world. Obtained results demonstrate the great potential of this method.  

  20. Bankruptcy risk and state regulation of continuing care retirement communities.

    Science.gov (United States)

    Conover, C J; Sloan, F A

    Continuing care retirement communities (CCRCs) often require substantial financial investment from residents, prompting concern about potential losses to residents in the event of a CCRC's bankruptcy. State governments have responded to this concern with varying levels of regulation. Overall, CCRC bankruptcy rates are very low (.3% per year). We found that measures of varying regulation stringency had no effect on indicators of CCRCs' financial performance relating to bankruptcy risk. CCRCs that offer extensive contracts, including unlimited long-term care in addition to housing, have less positive indicators of financial strength than other types of CCRCs. When measured by traditional health care industry standards of financial strength, CCRCs appear less profitable than other types of health care facilities. This raises the question of whether CCRCs can continue to attract the needed capital from private markets and because of that, suggests that their future growth may be limited. PMID:8567081

  1. LABOR PRODUCTIVITY AS A FACTOR FOR BANKRUPTCY PREDICTION

    Directory of Open Access Journals (Sweden)

    Daniel BRÎNDESCU – OLARIU

    2014-12-01

    Full Text Available The current study evaluates the potential of the labor productivity in predicting corporate bankruptcy. The population subjected to the analysis included all companies form Timis County with yearly sales of over 2200 Euros. The interest for the labor productivity was based on the recommendations of the scientific literature, as well as on the availability of information concerning its values to all stakeholders. The event on which the research was focused was represented by the manifestation of bankruptcy 2 years after the date of the financial statements of reference. All tests were performed over a paired sample of 1424 companies. The methodology employed in evaluating the potential of the labor productivity was based on the general accuracy ensured by the ratio (63.2% and the Area Under the ROC Curve (0.665. The results confirm the practical utility of the labor productivity in the prediction of bankruptcy.

  2. PROFITABILITY RATIO AS A TOOL FOR BANKRUPTCY PREDICTION

    Directory of Open Access Journals (Sweden)

    Daniel BRÎNDESCU – OLARIU

    2016-07-01

    Full Text Available The current study evaluates the potential of the profitability ratio in predicting corporate bankruptcy. The research is focused on Romanian companies, with the targeted event being represented by the manifestation of bankruptcy 2 years after the date of the financial statements of reference. All tests were conducted over 2 paired samples of 1176 Romanian companies. The methodology employed in evaluating the potential of the profitability ratio was based on the Area Under the ROC Curve (0.663 and the general accuracy ensured by the ratio (62.6% out-of-sample accuracy. The results confirm the practical utility of the profitability ratio in the prediction of bankruptcy and thus validate the need for further research focused on developing a methodology of analysis.

  3. Forecasting risk of bankruptcy for machine-building plants

    Science.gov (United States)

    Telipenko, E.; Zakharova, A.; Sopova, Svetlana

    2015-09-01

    The paper presents an overview of well-known bankruptcy risk forecasting models, elaborated as by Russian so by foreign authors, on the basis of the data about financial and business activities of the biggest machine-building Russian plants. The authors substantiate and confirm appropriateness of a fuzzy set model to the problem of bankruptcy risk forecasting. This model is worked out on the basis of 10 most important factors, which have the greatest influence on sales proceeds as the main financial source for a production plant.

  4. Prediction Model for Bankruptcy in Micro and Small Enterprises (MSEs

    Directory of Open Access Journals (Sweden)

    Magda Gabriela Sánchez Trujillo

    2014-07-01

    Full Text Available The main purpose of this research is to validate and improve the Weighted Ratio Valuation Model (RPV model in micro and small enterprises in Central Mexico, in order to propose an alternative to financial valuation methods to anticipate bankruptcy in this sector of the economy. To achieve this objective, the study proposes the empirical application of Mosqueda 2010. The results shed important information that allowed the identification of variables that lead to bankruptcy, making risk detection more accurate, which, in turn, made it possible to validate and consolidate the model. 1024x768 Normal 0 21 false false false

  5. Non-Statistical Methods of Analysing of Bankruptcy Risk

    Directory of Open Access Journals (Sweden)

    Pisula Tomasz

    2015-06-01

    Full Text Available The article focuses on assessing the effectiveness of a non-statistical approach to bankruptcy modelling in enterprises operating in the logistics sector. In order to describe the issue more comprehensively, the aforementioned prediction of the possible negative results of business operations was carried out for companies functioning in the Polish region of Podkarpacie, and in Slovakia. The bankruptcy predictors selected for the assessment of companies operating in the logistics sector included 28 financial indicators characterizing these enterprises in terms of their financial standing and management effectiveness. The purpose of the study was to identify factors (models describing the bankruptcy risk in enterprises in the context of their forecasting effectiveness in a one-year and two-year time horizon. In order to assess their practical applicability the models were carefully analysed and validated. The usefulness of the models was assessed in terms of their classification properties, and the capacity to accurately identify enterprises at risk of bankruptcy and healthy companies as well as proper calibration of the models to the data from training sample sets.

  6. Czech bankruptcy procedures: ex-post efficiency view

    Czech Academy of Sciences Publication Activity Database

    Knot, Ondřej; Vychodil, Ondřej

    -, 3/2006 (2006), s. 1-29 R&D Projects: GA MŠk LC542 Institutional research plan: CEZ:AV0Z70850503 Keywords : bankruptcy * liquidation * ex-post efficiency Subject RIV: AH - Economics http://ies.fsv.cuni.cz/index.php?module=publication&action=publication&id_publication=1878&lng=en_GB

  7. Ethical Considerations in Filing Personal Bankruptcy: A Hypothetical Case Study

    Science.gov (United States)

    Landry, Robert J., III

    2012-01-01

    A great deal of research by legal studies scholars pertains to employment law, international law, and corporate governance, as well as other fields including ethics and international law. The fields typically addressed are very important and rightfully receive considerable attention in the scholarship and textbooks. However, bankruptcy as a…

  8. How Does Personal Bankruptcy Law Affect Start-ups?

    NARCIS (Netherlands)

    Cerqueiro, G.M.; Penas, M.F.

    2011-01-01

    We analyze the effect of changes in U.S. state personal exemptions on the financing structure and performance of a representative sample of start-ups. An increase in the amount of borrower’s personal wealth protected in bankruptcy reduces the availability of bank credit to all start-ups. Owners of u

  9. Bankruptcy Law, Corporate Finance, and Corporate Revival Process in Japan

    OpenAIRE

    Noriyuki Yanagawa; Sumio Hirose; Fumio Akiyoshi

    2005-01-01

    This paper examines corporate revival processes in Japan. In recent years, corporate revival processes are drastically changing in Japan. For example, important bankruptcy laws have been revised and Industrial Revitalization Corporation was established. Moreover, many corporate revival funds are actively investing. This paper explains those new movements and examines how those new activities will change the Japanese economy.

  10. The Bankruptcy Reform Act and Student Loans: Unraveling New Knots.

    Science.gov (United States)

    Ayres, Ted D.; Sagner, Dianne R.

    1982-01-01

    The Bankruptcy Reform Act specifically prohibits discharge of educational loans. This statutory exception is discussed and information is provided for lawyers handling loan collection. The anomalous situation created by the chapter that does not specifically discharge educational debt is also described. (MSE)

  11. Recent Cases on Student Transcript Rights after Bankruptcy.

    Science.gov (United States)

    Millsap, Wayne L.; Wright, Pamela S.

    1979-01-01

    A court ruling in the Girardier v Webster College case, that a college or university may validly refuse to issue transcripts to former students who have not repaid their educational loans and who have discharged those obligations through bankruptcy, is discussed along with some related cases. (Author/MLW)

  12. Bankruptcy procedures and their implications for enterprises: a comparative aspect

    Directory of Open Access Journals (Sweden)

    A.V. Bytkivska

    2015-06-01

    Full Text Available In today’s unstable political and economic situation in the country is increasing the threat of losing financial capacity for domestic enterprises, which may subsequently lead to bankruptcy, whose effectiveness as a means of restoring solvency and getting rid of debt depends on the procedures performed in the course of its realization. In connection with this, the author of the article research essence, peculiarities and consequences of bankruptcy procedures in comparative aspect. As a result, of the characteristics of judicial bankruptcy proceedings, found that the application of appropriate procedures, readjustment, liquidation or settlement agreement may have both positive and negative consequences for the debtor company and could restore the solvency of the company and its business continuation or termination of its existence through liquidation. It is inappropriate to determine the effects of the procedure only disposition of property, which is a kind of phase transition to the next procedure and has no concrete results for the debtor. Having reviewed the features of pretrial bankruptcy pretrial readjustment was defined its main advantages in comparison with judicial readjustment to ensure its higher effectiveness, efficiency and profitability effects for the company and for the creditors. Results of the study indicate that the introduction judicial and pre-trial procedures is a complicated and important process which requires further research and settlement of uncertain in legislation

  13. Combating threats of bankruptcy to large energy consumers

    International Nuclear Information System (INIS)

    In spite of the outstanding advantages pointed out in the early privatization period in Croatia, the course of development taken by liberalized energy markets in Europe poses a number of threats of bankruptcy to large energy consumers. The paper presents several ways of combating these threats.(author)

  14. Altman Model and Bankruptcy Profile of Islamic Banking Industry: A Comparative Analysis on Financial Performance

    Directory of Open Access Journals (Sweden)

    Amin Jan

    2015-06-01

    Full Text Available The purpose of this paper is to examine the bankruptcy profile of Islamic banking industry and perform a comparative analysis of their financial characteristics with regards to bankruptcy. This paper applied Altman model on top five Islamic banking countries by global Islamic-banking assets with the objective to examine their bankruptcy profile, while ANOVA Post Hoc Scheffe test is applied to perform a comparative analysis on their financial characteristics relating to bankruptcy. From the selected sample the Saudi Arabian Islamic banks are found less bankrupt and moreover, two Saudi Arabian Islamic banks reserved the top two spots in z-score bankruptcy ranking list. However, Malaysian Islamic banks are found more bankrupt as they entitled the bottom four positions on z-score bankruptcy profile list. On performance indicators like liquidity, profitability and insolvency with regards to bankruptcy the Islamic banks from top five Islamic banking countries has a significant relationship. However, the relationship on productivity with regards to bankruptcy among the top five Islamic banking countries is found insignificant. The analysis here is viable for drawing the attention of researchers and practitioners of Islamic banking industry towards the overall deterioration in compound annual growth rate and the identified bankruptcy rate along with comparative financial performance on bankruptcy.

  15. PREDICTION OF CORPORATE BANKRUPTCY IN ROMANIA THROUGH THE USE OF LOGISTIC REGRESSION

    Directory of Open Access Journals (Sweden)

    Brindescu-Olariu Daniel

    2013-07-01

    As theoretical contributions, the research proves that the companies that filed for bankruptcy during the crisis period showed signs of weaknesses before the beginning of the crisis. Financial ratios that show relevance in the prediction of corporate bankruptcy at local level have been identified and their correlation with the bankruptcy probability has been evaluated. The model is expected to maintain its accuracy with minimal or no additional calibration for companies from the entire Romanian economy that fit the profile of the target population.

  16. An Analysis on Qualitative Bankruptcy Prediction Rules using Ant-Miner

    OpenAIRE

    Martin, A. (Alan); T.Miranda Lakshmi; V. Prasanna Venkatesan

    2013-01-01

    Qualitative bankruptcy prediction rules represent experts' problem-solving knowledge to predict qualitative bankruptcy. The objective of this research is predicting qualitative bankruptcy using ant-miner algorithm. Qualitative data are subjective and more difficult to measure. This approach uses qualitative risk factors which include fourteen internal risk factors and sixty eight external risk factors associated with it. By using these factors qualitative prediction rules are generated using ...

  17. Are Russian Commercial Courts Biased? Evidence from a Bankruptcy Law Transplant

    OpenAIRE

    Ariane Lambert-Mogiliansky; Konstantin Sonin; Ekaterina Zhuravskaya

    2007-01-01

    We study the nature of judicial bias in bankruptcy proceedings following the enactment of the 1998 bankruptcy law in Russia. The two main findings are as follows. First, regional political characteristics affected judicial decisions about the number and types of bankruptcy proceedings initiated after the law took effect. Controlling for indicators of firms’ insolvency and the quality of the regional judiciary, re-organization procedures were significantly more frequent in regions with politic...

  18. Consumer Bankruptcy: A Third Way Between Autonomy and Paternalism in Private Law

    OpenAIRE

    Huls, Nick

    2010-01-01

    textabstractThe introduction of American ideas of consumer bankruptcy in European continental civil law systems appears to present an opportunity to resolve some of the paradoxes of paternalism analysed by Ogus. Bankruptcy law for individuals in Europe has evolved from a neglected field of procedural civil law, in which creditor autonomy was the prevailing norm, into a blossoming field of social policy and consumer protection. This article sketches the history of ‘bankruptcy waves’ and reflec...

  19. Breaking Bankruptcy Priority: How Rent-Seeking Upends the Creditors' Bargain

    OpenAIRE

    Roe, Mark J.; Tung, Frederick

    2013-01-01

    Bankruptcy reallocates value in a faltering firm. The bankruptcy apparatus eliminates some claims and alters others, leaving a reduced set of claims to match the firm’s diminished capacity to pay. This restructuring is done according to statutory and agreed-to contractual priorities, so that lower-ranking claims are eliminated first and higher-ranking ones are preserved to the extent possible. Bankruptcy scholarship has long conceptualized this reallocation as a hypothetical bargain among cr...

  20. How well does bankruptcy work when large financial frms fail? Some lessons from Lehman Brothers

    OpenAIRE

    IV, Thomas J. Fitzpatrick; James B. Thomson

    2011-01-01

    There is disagreement about whether large and complex financial institutions should be allowed to use U.S. bankruptcy law to reorganize when they get into financial difficulty. We look at the Lehman example for lessons about whether bankruptcy law might be a better alternative to bailouts or to resolution under the Dodd-Frank Act’s orderly liquidation authority. We find that there is no clear evidence that bankruptcy law is insufficient to handle the resolution of large complex financial firm...

  1. Derivatives Safe Harbors in Bankruptcy and Dodd-Frank: A Structural Analysis

    OpenAIRE

    Adams, Stephen D.

    2013-01-01

    The Bankruptcy Code exempts financial derivatives and repurchase agreements from key provisions, such as the automatic stay. The primary rationale for this special treatment has been the fear that the failure of an important market participant could cascade if counterparties could not immediately exit their contracts. Reflecting on the recent financial crisis and the Lehman bankruptcy, some scholars have suggested that exempting these financial contracts from bankruptcy may have exacerbated o...

  2. A Simple Test of Adverse Events and Strategic Timing Theories of Consumer Bankruptcy

    OpenAIRE

    Li Gan; Tarun Sabarwal

    2005-01-01

    A test of adverse events and strategic timing theories can be conducted by determining whether some relevant financial decision variables, such as financial benefit from filing for bankruptcy, or debt discharged in bankruptcy are endogenous with the bankruptcy decision or not. For the strategic timing theory such decisions are endogenous, while for the adverse events theory they are not. Hausman tests for endogeneity show that financial benefit, unsecured debt, and non-exempt assets are exoge...

  3. BANKRUPTCY - A POSSIBLE NEW START FOR THE SMALL BUSINESS?

    Directory of Open Access Journals (Sweden)

    LAURA GIURCA VASILESCU

    2010-01-01

    Full Text Available Many factors (internal and external can make a business vulnerable. In the context of the international financial crisis, the firms, and especially the small and mediume enterprises (SMEs have to face new challenges. Smaller businesses are particularly prone to financial difficulties as they often lack resources to adapt to the changing market conditions. Very often the business distress or even business failure is not yet sufficiently understood as a normal economic development and an opportunity for a new start. In order to take the full potential of business in Europe, should be created the background that genuinely talented entrepreneurs have every opportunity to get another second chance. The European Commission lays out proposals to actively help businesses at financial risk and prevent bankruptcy. In the same time, the national insolvency systems should provide more options for restructuring and rescue. Thus, EU supports simpler and faster procedures for bankruptcy and encourages giving a second chance to honest entrepreneurs who have failed.

  4. The Lehman Brothers Bankruptcy D: The Role of Ernst & Young

    OpenAIRE

    Rosalind Z. Wiggins; Rosalind L. Bennett; Andrew Metrick

    2014-01-01

    For many years prior to its demise, Lehman Brothers employed Ernst & Young (EY) as the firm’s independent auditors to review its financial statements and express an opinion as to whether they fairly represented the company’s financial position. EY was supposed to try to detect fraud, determine whether a matter should be publicly disclosed, and communicate certain issues to Lehman’s Board audit committee. After Lehman filed for bankruptcy, it was discovered that the firm had employed questiona...

  5. Essays on banking, corporate bankruptcy, and corporate finance

    OpenAIRE

    von Schedvin, E.L.

    2012-01-01

    Abstract: This thesis consists of four chapters that empirical explore issues related to bank credit supply, corporate bankruptcy risk, and firms’ leverage decisions. The first chapter explores the role of contractual externalities in loan contracts. The second chapter evaluates the extent trade credit chains between corporate firms lead to propagation of corporate failures. The third chapter explores non-linear relationships between firm failure and leverage, earnings, and liquidity. The fin...

  6. THE NUCLEOLUS OF THE BANKRUPTCY PROBLEM BY HYDRAULIC RATIONING

    OpenAIRE

    TAMÁS FLEINER; BALÁZS SZIKLAI

    2012-01-01

    In this note, we give a straightforward and elementary proof of a theorem by Aumann and Maschler stating that in the well-known bankruptcy problem, the so-called CG-consistent solution described by the Talmud represents the nucleolus of the corresponding coalitional game. The proof nicely fits into the hydraulic rationing framework proposed by Kaminski. We point out further interesting properties in connection with this framework.

  7. THE TAL-FAMILY OF RULES FOR BANKRUPTCY PROBLEMS

    OpenAIRE

    Antonio Villar Notario; Juan D. Moreno Ternero

    2001-01-01

    This paper analyzes a family of solutions to bankruptcy problems that generalizes the Talmud rule (T) and encompasses both the constrained equal-awards rule (A) and the constrained equal-losses rule (L). We study the structural properties of this family of rules and provide a characterization result. That allows us to identify the distinctive features of these three reference rules, T, A, L.

  8. THE THREE MUSKETEERS: FOUR CLASSICAL SOLUTIONS TO BANKRUPTCY PROBLEMS

    OpenAIRE

    Antonio Villar Notario; Carmen Herrero Blanco

    2000-01-01

    This paper provides a comparative analysis of some classical solutions to bankruptcy problems from an axiomatic viewpoint. These rules are the constrained equal-awards rule, the constrained equal-losses rule, the proportional rule and the Talmud rule. The purpose of this study is to facilitate the understanding of their differences and to clarify the type of situations in which each of these rules is better.

  9. Financial Distress and Corporate Governance around Lehman Brothers Bankruptcy

    OpenAIRE

    Xavier Brédart

    2014-01-01

    United States faced a growing number of corporate bankruptcies during the subprime crisis. This article is intended to determine the effectiveness of some governance mechanisms on the financial distress probability of companies over the period 2007–2009. This period is divided into two parts; we take the date of filing for chapter 11 of the company Lehman Brothers (15 December, 2008) as the cutting point between the mortgage and the financial phases of the crisis. Aiming to highlight the infl...

  10. Risky College Investment under Alternative Bankruptcy Regimes for Student Loans

    OpenAIRE

    Ionescu, Felicia

    2009-01-01

    I consider the implications of alternative bankruptcy regimes for student loans ina heterogeneous model of life-cycle earnings and risky human capital accumulation. Findings suggest that the ability level of high-school graduates drives the decision to enroll in college, while the initial human capital level is crucial for completing college. Also, the correlation between parental wealth and ability and human capital stock is key in delivering enrollment and completion rates across income gro...

  11. Essays on banking, corporate bankruptcy, and corporate finance.

    OpenAIRE

    2012-01-01

    Abstract: This thesis consists of four chapters that empirical explore issues related to bank credit supply, corporate bankruptcy risk, and firms’ leverage decisions. The first chapter explores the role of contractual externalities in loan contracts. The second chapter evaluates the extent trade credit chains between corporate firms lead to propagation of corporate failures. The third chapter explores non-linear relationships between firm failure and leverage, earnings, and liquidity. The fin...

  12. Essays on banking, corporate bankruptcy, and corporate finance

    OpenAIRE

    von Schedvin, E.L.

    2012-01-01

    This thesis consists of four chapters that empirical explore issues related to bank credit supply, corporate bankruptcy risk, and firms’ leverage decisions. The first chapter explores the role of contractual externalities in loan contracts. The second chapter evaluates the extent trade credit chains between corporate firms lead to propagation of corporate failures. The third chapter explores non-linear relationships between firm failure and leverage, earnings, and liquidity. The final chapter...

  13. Drivers of corporate bankruptcy and default : study concerning Portuguese Companies

    OpenAIRE

    Morais, José Carlos de Matos

    2013-01-01

    My purpose with this dissertation is to investigate the relevance of financial and economic variables as predictors of corporate bankruptcy (default) in Portugal. Understanding the underlying issues behind corporate distress and failure is crucial for several areas particularly: granting (or not) a bank loan, managing credit risk and pricing debt. The present financial and economic crisis stimulated a growing interest on matters related to corporate default, ratings and scoring...

  14. Synthesis of research studies examining prediction of bankruptcy

    OpenAIRE

    Linden, Heikki

    2015-01-01

    The purpose of this study is to synthesize the findings of prior bankruptcy prediction research studies by compiling and classifying the independent variables used as predictor variables in the studies. The objective is to find out the popularity of the different types of the predictor variables by classifying the variables into the categories describing the fincancial function of the variables, and by assessing the popularity of the significant variables in the categories. This work studies ...

  15. The Bankruptcy according the Albanian law - Effects of practice and legal framework in setting up a structured system of Bankruptcy administration

    Directory of Open Access Journals (Sweden)

    Altina Xhoxhaj

    2013-01-01

    Full Text Available The aim of this article is to present the concept of bankruptcy as a legal judicial procedure to be followed in case that the legal or natural person becomes insolvent. The paper is focused on the meaning of bankruptcy, the subjects of bankruptcy proceedings, causes for the opening of this proceeding, the competent court and its decision according to the law no.8901, dated 23.05.2002 “On bankruptcy” published in official Journal nr.31/2002. These article deals also with the organs of bankruptcy proceedings, administrator, meeting of creditors and methods of the conclusion of bankruptcy proceedings. A brief description of debtor’s possibilities during bankruptcy proceedings is given also in article. It deals with debtor’s closeout, rehabilitation/reorganization of the company and debtor’s liquidation. However, it should be noted that the bankruptcy procedure is a procedure not very widespread in our country, that due to the small number of cases before our courts. It also has to do with the fact that subjects rarely addressed the court.

  16. ANALYSIS OF ROMANIAN SMALL AND MEDIUM ENTERPRISES BANKRUPTCY RISK

    Directory of Open Access Journals (Sweden)

    Kulcsar Edina

    2014-07-01

    Full Text Available Considering the fundamental role of small and medium enterprises in Romanian economy, this paper aims to quantify the level of their bankruptcy risk for 2009 and 2012 period, after debuting of financial crisis. The main reason of selecting this type of companies is that they represent the backbone of national economy. They have an indispensable role, because they offer jobs for great part of population and their contribution for GDP stimulation is considerable. In this paper it was applied two default risk models, namely the well known Altman’s Z-score model, based on five financial ratios and a bankruptcy predictor model developed by Teti et. al (2012 used firstly exclusively for Italian small and medium-sized enterprise for 2006-2009 period. The model proposed by Teti et. is based on the investigation of financially distressed and financially non-distressed Italian small and medium-sized enterprises during the financial crisis by using a discriminant analysis model. They conclude that there are four financial ratios, which characterized well the small and medium-sized enterprises bankruptcy risk. These variables are financial ratios, like: Debt/Total Assets, Return on Sales (ROS, EBIT/Interest Expenses and Working capital/EBIDTA. They consider that small and medium-sized enterprises require a particular approach in terms of bankruptcy risk analysis. In present study I try to compare the efficiency of traditional bankruptcy risk model with a small and medium-sized specific model. The necessary database for present analysis is ensured by simplified financial reports of 120 small and medium-sized enterprises registered in Bihor County. The selected enterprises are operating in manufacturing industry (21,67% and trading (78,33%. Present investigation has an important value in actual economic background, where the healthiness and sustainability of small and medium-sized enterprises is a great issue. The results of study shows contradictory

  17. The Bankruptcy according the Albanian law - Effects of practice and legal framework in setting up a structured system of Bankruptcy administration

    OpenAIRE

    Altina Xhoxhaj

    2013-01-01

    The aim of this article is to present the concept of bankruptcy as a legal judicial procedure to be followed in case that the legal or natural person becomes insolvent. The paper is focused on the meaning of bankruptcy, the subjects of bankruptcy proceedings, causes for the opening of this proceeding, the competent court and its decision according to the law no.8901, dated 23.05.2002 “On bankruptcy” published in official Journal nr.31/2002. These article deals also with the organs of bankrupt...

  18. 78 FR 12089 - Revision of Certain Dollar Amounts in the Bankruptcy Code Prescribed Under Section 104(a) of the...

    Science.gov (United States)

    2013-02-21

    ... of Certain Dollar Amounts in the Bankruptcy Code Prescribed Under Section 104(a) of the Code AGENCY..., Bankruptcy Judges Division, Administrative Office of the United States Courts, Washington, DC 20544, telephone (202) 502-1900, or by email at Bankruptcy_Judges_Division@ao.uscourts.gov ....

  19. 78 FR 49768 - Hearings of the Judicial Conference Advisory Committees on Rules of Bankruptcy and Civil Procedure

    Science.gov (United States)

    2013-08-15

    ... UNITED STATES Hearings of the Judicial Conference Advisory Committees on Rules of Bankruptcy and Civil Procedure AGENCY: Advisory Committees on Rules of Bankruptcy and Civil Procedure, Judicial Conference of the... on Rules of Bankruptcy and Civil Procedure have proposed amendments to the following rules and...

  20. 77 FR 73660 - Federal Acquisition Regulation; Information Collection; Bankruptcy (FAR subpart 42.9; 52.242-13)

    Science.gov (United States)

    2012-12-11

    ... Regulation; Information Collection; Bankruptcy (FAR subpart 42.9; 52.242-13) AGENCY: Department of Defense... approved information collection requirement concerning Bankruptcy. Public comments are particularly invited... statute, contractors may enter into bankruptcy which may have a significant impact on the...

  1. Analytical review on the major Issues of the new bankruptcy (law)legislation

    Institute of Scientific and Technical Information of China (English)

    WANG Xinxin

    2006-01-01

    The bankruptcy law is an integral part of the legal system of societies with market economy.After many years of preparation,the draft of the new bankruptcy law in China was submitted to the Standing Committee of the National People's Congress twice and is waiting for the third approval to be enacted.Drawing on the experiences of other countries,the new bankruptcy law tries to carry out the concepts of market economy,eliminate the residual influences of planned economy that existed in the old law,protect lawful rights and interests of creditors and debtors,and maintain the order of socialist market economy.This thesis analyzes and researches on the major and controversial issues that emerged during the legislation of the new bankruptcy law from the aspects such as the principle of the legislation,criteria of bankruptcy,preservation or abolishment of policy-related bankruptcy,protection of the employees' fights and interests of bankrupt enterprises,the creditors' committee system,the trustee system,reorganization system to prevent bankruptcy,and the legal obligations of bankrupt,and so on.It also gives a comprehensive introduction to the innovation and modification of the new bankruptcy law.

  2. The Permissibility of Withholding Transcripts under the Bankruptcy Law. NACUA Publication Series.

    Science.gov (United States)

    Tanaka, Paul

    Provisions of the U.S. Bankruptcy Code that affect the right of colleges to withhold transcripts as a means of collecting student debts are considered. Automatic stay provisions state that the filing of a petition for bankruptcy relief prohibits actions to collect obligations of the debtor. The discharge injunction provides that once a discharge…

  3. The Economics of Bankruptcy and the Transition to a Market Economy

    OpenAIRE

    Abel, István; Gatsios, Konstantine

    1993-01-01

    This paper looks at simple decision rules in bankruptcy procedures. It describes special issues of enterprise liquidation and reorganization during economic transformation. The reforms of the financial system and other important factors in economic transformation influence the impact of bankruptcy regulation in a way distorting it towards liquidation.

  4. Costs and Recovery Rates in the Dutch Liquidation-Based Bankruptcy System

    NARCIS (Netherlands)

    O. Couwenberg (Oscar); A. de Jong (Abe)

    2007-01-01

    textabstractWe present evidence on the efficiency of the resolution of financial distress in bankruptcy in The Netherlands. We employ a unique data set based on the files of the trustees and court offices, which includes the characteristics of the firms before and in the bankruptcy procedures, the d

  5. 75 FR 32816 - Meeting of the Judicial Conference Advisory Committee on Rules of Bankruptcy Procedure

    Science.gov (United States)

    2010-06-09

    ... From the Federal Register Online via the Government Publishing Office JUDICIAL CONFERENCE OF THE UNITED STATES Meeting of the Judicial Conference Advisory Committee on Rules of Bankruptcy Procedure AGENCY: Judicial Conference of the United States Advisory Committee on Rules of Bankruptcy...

  6. 75 FR 81644 - Meeting of the Judicial Conference Advisory Committee on Rules of Bankruptcy Procedure

    Science.gov (United States)

    2010-12-28

    ... From the Federal Register Online via the Government Publishing Office JUDICIAL CONFERENCE OF THE UNITED STATES Meeting of the Judicial Conference Advisory Committee on Rules of Bankruptcy Procedure AGENCY: Judicial Conference of the United States Advisory Committee on Rules of Bankruptcy...

  7. The Constrained Equal Award Rule for Bankruptcy Problems with a Priori Unions

    OpenAIRE

    Casas-Mendez, B.; Borm, P.E.M.; Carpente, L.; Hendrickx, R.L.P.

    2002-01-01

    In this paper, we provide four extensions of the constrained equal award rule for bankruptcy situations to the class of bankruptcy situations with a priori unions. We present some characterisations and relations with corresponding games. The four new extensions are illustrated by a specific application.

  8. 78 FR 77492 - Hearings of the Judicial Conference Advisory Committee on Rules of Bankruptcy Procedure; Federal...

    Science.gov (United States)

    2013-12-23

    ... UNITED STATES Hearings of the Judicial Conference Advisory Committee on Rules of Bankruptcy Procedure... Bankruptcy Procedure, Judicial Conference of the United States. ACTION: Notice of Cancellation of Open Hearing. SUMMARY: The following public hearing on proposed amendments to the Federal Rules of...

  9. 76 FR 34590 - Bankruptcy Filing Date Treated as Plan Termination Date for Certain Purposes; Guaranteed Benefits...

    Science.gov (United States)

    2011-06-14

    ... changes made by section 404. On July 1, 2008 (at 73 FR 37390), PBGC published in the Federal Register a... CORPORATION 29 CFR Parts 4001, 4022, and 4044 RIN 1212-AA98 Bankruptcy Filing Date Treated as Plan Termination... contributing sponsor is in bankruptcy, sections 4022 and 4044(a)(3) of ERISA are applied by treating the...

  10. The Association between Bankruptcy and Hospital-Presenting Attempted Suicide: A Record Linkage Study

    Science.gov (United States)

    Kidger, Judi; Gunnell, David; Jarvik, Jeffrey G.; Overstreet, Karen A.; Hollingworth, William

    2011-01-01

    The associations between admissions to an emergency department following attempted suicide and personal bankruptcy in the preceding and subsequent 2 years were evaluated. Records from a level 1 trauma center (June 1993-December 2002) in Seattle, WA, were linked with case files from the local U.S. District Bankruptcy Court (June 1991 onward).…

  11. 78 FR 1882 - Hearings of the Judicial Conference Advisory Committee on Rules of Bankruptcy Procedure

    Science.gov (United States)

    2013-01-09

    ... UNITED STATES Hearings of the Judicial Conference Advisory Committee on Rules of Bankruptcy Procedure Federal Register Citation of Previous Announcements: 77 FR H9828. AGENCY: Advisory Committee on Rules of Bankruptcy Procedure, Judicial Conference of the United States. ACTION: Notice of Cancellation of...

  12. 77 FR 76072 - Hearings of the Judicial Conference Advisory Committee on Rules of Bankruptcy Procedure; Federal...

    Science.gov (United States)

    2012-12-26

    ... UNITED STATES Hearings of the Judicial Conference Advisory Committee on Rules of Bankruptcy Procedure... States, Advisory Committee on Rules of Bankruptcy Procedure. ACTION: Notice of Cancellation of Open Hearing. SUMMARY: The following public hearing on proposed amendments to the Federal Rules of...

  13. An Analysis on Qualitative Bankruptcy Prediction Rules using Ant-Miner

    Directory of Open Access Journals (Sweden)

    A. Martin

    2013-12-01

    Full Text Available Qualitative bankruptcy prediction rules represent experts' problem-solving knowledge to predict qualitative bankruptcy. The objective of this research is predicting qualitative bankruptcy using ant-miner algorithm. Qualitative data are subjective and more difficult to measure. This approach uses qualitative risk factors which include fourteen internal risk factors and sixty eight external risk factors associated with it. By using these factors qualitative prediction rules are generated using ant-miner algorithm and the influence of these factors in bankruptcy is also analyzed. Ant-Miner algorithm is a application of ant colony optimization and data mining concepts. Qualitative rules generated by ant miner algorithm are validated using measure of agreement. These prediction rules yields better accuracy with lesser number of terms than previously applied qualitative bankruptcy prediction methodologies.

  14. A New Approach to Predicting Bankruptcy: Combining DEA and Multi-Layer Perceptron

    Directory of Open Access Journals (Sweden)

    Ayan Mukhopadhyay

    2012-07-01

    Full Text Available The question of financial health and sustenance of a firm is so intriguing that it has spanned numerous studies. For investors,stakeholders and lenders, assessing the risk associated with an enterprise is vital. Several tools have been formulated to deal with predicting the solvency of a firm. This paper attempts to combine Data Envelopment Analysis and Multi-Layer Perceptron (MLP to suggest a new method for prediction of bankruptcy that not only focusses on historical financial data of firms that filed for bankruptcy like other past studies but also takes into account the data of those firms that were likely to do so. This method thus identifies firms that have a high chance of facing bankruptcy along with those that have filed for bankruptcy. The performance of this procedure is compared with MLP. The suggested method outperforms MLP in prediction of bankruptcy.

  15. Bankruptcy Risk in IFRS Era. Case Study on BSE Companies

    Directory of Open Access Journals (Sweden)

    Valentin BURCA

    2013-12-01

    Full Text Available The path of international accounting convergence is, unanimously accepted by all decision makers of the international financial reporting environment, as being the best solution towards reducing differences in international accounting. The idea of core standards is embraced by our country, too, the proof being the last legislative changes in Romanian accounting framework. This study aims to highlight a small part of the economic consequences of the decision to extend the mandatory use of IFRS standards to the statutory financial statements, also. More exactly we will underline the changes registered at the level of bankruptcy risk measureson a samples of companies listed on BSE.

  16. Section 365, Mandatory Bankruptcy Rules and Inefficient Continuance

    OpenAIRE

    Yeon-Koo Che; Alan Schwartz

    1998-01-01

    Section 365 of the Bankruptcy Code prohibits enforcement of the once common "ipso facto" clause." The clause excuses the solvent party from performance of the contract when the other party becomes insolvent. We show that the ability of insolvent firms to continue bad projects is enhanced by the absence of ipso facto clauses. Without such a clause, the firm can exploit the inability of courts always to assess expectation damages accurately to compel a solvent party to stay in a bad deal. An ip...

  17. The Lehman Brothers Bankruptcy G: The Special Case of Derivatives

    OpenAIRE

    Rosalind Z. Wiggins; Andrew Metrick

    2014-01-01

    When it filed for bankruptcy protection in September 2008, Lehman Brothers was an active participant in the derivatives market and was party to 906,000 derivative transactions of all types under 6,120 ISDA Master Agreements with an estimated notional value of $35 trillion. The majority of Lehman’s derivatives were bilateral agreements not traded on an exchange but in the over-the-counter (OTC) market. Because derivatives enjoyed an exemption from the automatic stay provisions of the U.S. Bank...

  18. The Lehman Brothers Bankruptcy H: The Global Contagion

    OpenAIRE

    Rosalind Z. Wiggins; Andrew Metrick

    2014-01-01

    When Lehman Brothers filed for bankruptcy on September 15, 2008, it was the largest such filing in U.S. history and a huge shock to the world’s financial markets, which were already stressed from the deflated housing bubble and questions about subprime mortgages. Lehman was the fourth-largest U.S. investment bank with assets of $639 billion and its operations spread across the globe. Lehman’s clients and counterparties began to disclose millions of dollars of potential losses as they accounte...

  19. A new framework for resolving conflicts over transboundary rivers using bankruptcy methods

    Science.gov (United States)

    Madani, K.; Zarezadeh, M.; Morid, S.

    2014-08-01

    A novel bankruptcy approach is proposed for resolving transboundary river conflicts in which the total water demand or claim of the riparian parties is more than the available water. Bankruptcy solution methods can allocate the available water to the conflicting parties with respect to their claims. Four commonly used bankruptcy methods in the economic literature are used here to develop new river bankruptcy solution methods for allocating water to the riparian parties of river systems. Given the non-uniform spatial and temporal distribution of water across river basins, the proposed solution methods are formulated as non-linear network flow optimization models to allocate water with respect to time sensitivity of water deliveries at different locations in a river network during the planning horizon. Once allocation optimization solutions are developed, their acceptability and stability must be evaluated. Thus, a new bankruptcy allocation stability index (BASI) is developed for evaluating the acceptability of river bankruptcy solutions. To show how the proposed river bankruptcy framework can be helpful in practice, the suggested methods are applied to a real-world transboundary river system with eight riparians under various hydrologic regimes. Stability analysis based on the proposed stability evaluation method suggests that the acceptability of allocation rules is sensitive to hydrologic conditions and demand values. This finding has an important policy implication suggesting that fixed allocation rules and treaties may not be reliable for securing cooperation over transboundary water resources as they are vulnerable to changing socioeconomic and climatic conditions as well as hydrologic non-stationarity.

  20. The effects of bankruptcy and insolvency on exploration agreements

    Energy Technology Data Exchange (ETDEWEB)

    Gillespie, E.M.

    1999-07-01

    Insolvencies in the oil and gas industries affect many parties who are indirectly involved in the search for and extraction of hydrocarbons, and claims among the joint participants are evident, but the claims of secured lenders, royalty holders, shareholders, and numerous unsecured third parties also deserve consideration. With bankruptcy and insolvency as the backdrop, consideration is given to the following issues: 1) implications of the CAPL Operating Procedure on various, often competing, interests, including the claims of the operator, non-operators, and third parties; 2) ramifications for parties to a farmout agreement where the farmee becomes insolvent; 3) the effect of insolvency of the grantor on the holder of a gross overriding royalty; and 4) remedies available to flow-through shareholders where there are insufficient expenditures because of the financial distress of the issuer. Answers are not provided herein to all the issues that may arise upon the insolvency of a party to an exploration agreement, but awareness of the potential hazards will assist in working toward creative, often proactive, solutions as the petroleum industry experiences an increasing number of bankruptcies and insolvencies.0.

  1. The effects of bankruptcy and insolvency on exploration agreements

    International Nuclear Information System (INIS)

    Insolvencies in the oil and gas industries affect many parties who are indirectly involved in the search for and extraction of hydrocarbons, and claims among the joint participants are evident, but the claims of secured lenders, royalty holders, shareholders, and numerous unsecured third parties also deserve consideration. With bankruptcy and insolvency as the backdrop, consideration is given to the following issues: 1) implications of the CAPL Operating Procedure on various, often competing, interests, including the claims of the operator, non-operators, and third parties; 2) ramifications for parties to a farmout agreement where the farmee becomes insolvent; 3) the effect of insolvency of the grantor on the holder of a gross overriding royalty; and 4) remedies available to flow-through shareholders where there are insufficient expenditures because of the financial distress of the issuer. Answers are not provided herein to all the issues that may arise upon the insolvency of a party to an exploratio n agreement, but awareness of the potential hazards will assist in working toward creative, often proactive, solutions as the petroleum industry experiences an increasing number of bankruptcies and insolvencies.0

  2. A nova lei de falências brasileira: primeiros impactos The new Brazilian bankruptcy law

    Directory of Open Access Journals (Sweden)

    Aloisio Araujo

    2009-09-01

    Full Text Available The goal of this paper is to analyze the premiere effects of the New Brazilian Bankruptcy Law, measuring its impact over the amount of bankruptcies and judicial reorganizations, and the firms' access to credit. Making use of econometric models we find that the amount of bankruptcies (requested and decreed suffered a strong and immediate impact, reducing it in a significant way as well as the requirement of judicial reorganizations. Finally, using sectorial aggregated credit data, we find an expansion of the credit market, mainly to commercial, rural and services sectors. Additionally we did not evidence changes at the average interest rate charged to firms.

  3. THE USEFULNESS OF THE AUTONOMY RATIO IN THE PREDICTION OF BANKRUPTCY

    Directory of Open Access Journals (Sweden)

    Daniel BRÎNDESCU-OLARIU

    2015-11-01

    Full Text Available The purpose of the current study was to test the potential of the autonomy ratio in the prediction of bankruptcy. The target population included all the active companies from the Timis County with annual sales of over 10,000 lei. The event the research was focused on is represented by the occurence of bankruptcy 2 years after the date of the financial statements of reference. The bankruptcy was defined in accordance with the Romanian law applicable over the period targeted by the study. The tests were performed over a paired-sample that included all the companies from the target population that went bankrupt during the period 2011-2012. The discrimination power of the autonomy ratio was evaluated for different cut-off values recommended by the existing literature. The research proves the utility of the autonomy ratio in the prediction of bankruptcy two years before its occurence.

  4. A Business Intelligence Model to Predict Bankruptcy using Financial Domain Ontology with Association Rule Mining Algorithm

    Directory of Open Access Journals (Sweden)

    A Martin

    2011-05-01

    Full Text Available Today in every organization financial analysis provides the basis for understanding and evaluating the results of business operations and delivering how well a business is doing. This means that the organizations can control the operational activities primarily related to corporate finance. One way that doing this is by analysis of bankruptcy prediction. This paper develops an ontological model from financial information of an organization by analyzing the Semantics of the financial statement of a business. One of the best bankruptcy prediction models is Altman Z-score model. Altman Z-score method uses financial rations to predict bankruptcy. From the financial ontological model the relation between financial data is discovered by using data mining algorithm. By combining financial domain ontological model with association rule mining algorithm and Z-score model a new business intelligence model is developed to predict the bankruptcy.

  5. A Business Intelligence Model to Predict Bankruptcy using Financial Domain Ontology with Association Rule Mining Algorithm

    CERN Document Server

    Martin, A; Venkatesan, Dr V Prasanna

    2011-01-01

    Today in every organization financial analysis provides the basis for understanding and evaluating the results of business operations and delivering how well a business is doing. This means that the organizations can control the operational activities primarily related to corporate finance. One way that doing this is by analysis of bankruptcy prediction. This paper develops an ontological model from financial information of an organization by analyzing the Semantics of the financial statement of a business. One of the best bankruptcy prediction models is Altman Z-score model. Altman Z-score method uses financial rations to predict bankruptcy. From the financial ontological model the relation between financial data is discovered by using data mining algorithm. By combining financial domain ontological model with association rule mining algorithm and Zscore model a new business intelligence model is developed to predict the bankruptcy.

  6. Public Company Bankruptcy Cases Opened and Monitored for Fiscal Year 2009

    Data.gov (United States)

    Securities and Exchange Commission — This file contains all of the bankruptcy cases for public companies opened and monitored in the fiscal year 2009. The data includes the District Court, the state,...

  7. Simulating Dynamics: Using Role-Playing to Teach the Process of Bankruptcy Reorganization.

    Science.gov (United States)

    Fry, Patricia Brumfield

    1987-01-01

    A course focusing on bankruptcy reorganization uses simulation and role-playing to increase the depth and speed of students' comprehension of the substantive concepts inherent in reorganization proceedings and their place in the process. (MSE)

  8. A hybrid model for bankruptcy prediction using genetic algorithm, fuzzy c-means and mars

    CERN Document Server

    Martin, A; Saranya, G; Gayathri, P; Venkatesan, Prasanna

    2011-01-01

    Bankruptcy prediction is very important for all the organization since it affects the economy and rise many social problems with high costs. There are large number of techniques have been developed to predict the bankruptcy, which helps the decision makers such as investors and financial analysts. One of the bankruptcy prediction models is the hybrid model using Fuzzy C-means clustering and MARS, which uses static ratios taken from the bank financial statements for prediction, which has its own theoretical advantages. The performance of existing bankruptcy model can be improved by selecting the best features dynamically depend on the nature of the firm. This dynamic selection can be accomplished by Genetic Algorithm and it improves the performance of prediction model.

  9. Impact of bankruptcy and insolvency on third parties in the petroleum industry: conference papers

    International Nuclear Information System (INIS)

    The Insight Conference has seven articles on the following aspects of the conference theme: I - overview of the Bankruptcy and Insolvency Act and Companies' Creditor's Arrangement Act; II- the effects of bankruptcy and insolvency on exploration agreements; III - the effects of bankruptcy on CO and O, unit and pooling agreements; IV - impact of bankruptcy and insolvency on marketing and transportation agreements; V - claims of operators, non-operators and third parties arising from oil and gas operations; V I - buying and selling assets from a bankrupt or insolvent party; and VII - environmental liability for receivers, trustees and others in the petroleum industry. Abstracts/descriptors are included for articles II, V, and VII. separately

  10. BANKRUPTCY AND PRODUCT MARKET COMPETITION: EVIDENCE FROM TEHRAN STOCK EXCHANGE

    Directory of Open Access Journals (Sweden)

    Seyed Davoud Hosseini Rad

    2014-06-01

    Full Text Available In the past few years, thousands of companies have gone bankrupt and out of competition due to intense market competition and inefficient management. To assess bankruptcy cost most researchers have used direct expenses such as administrative expenses and indirect type like nonoperational expenses. Franks andTorous 1989, Thorburn 2000, Bebchuk 2002, Bris et al. 2006, Whited 2007. In economy arguments are based on that competition is an excellent mechanism for resource allocation in the market and has a disciplinary effect on managers' behavior and their insufficiency (Markarian and Santaló 2010. So Gyrvd and Mueller (2008 and 2009 discussed the issue of how corporate governance mechanisms will rush to their aid when markets are in danger of liquidation.

  11. A New Approach for Bounding Awards in Bankruptcy Problems

    Directory of Open Access Journals (Sweden)

    Marco-Gil, M.Carmen

    2008-01-01

    Full Text Available The solution for the ‘Contested Garment Problem’proposed in the Babylonic Talmud,one of the most important sources of inspiration for solving situations where demandovercomes supply of some resources, suggests that each agent should receive at least somepart of the available amount when facing these situations. This idea has underlied thetheoretical analysis of bankruptcy problems from its beginning (O’Neill, 1982 to presentday (Dominguez and Thomson, 2006. In this context, starting from the fact that a societyestablishes its own set of ‘Commonly Accepted Equity Principles’, we propose a new lowerbound on awards de…ned, for each agent, as the minimum amount she gets according toall the admissible rules for such a society. Moreover, we analyze the recursive applicationof this new bound, since it will not exhaust the resources, in general.

  12. Optimal trading from minimizing the period of bankruptcy risk

    Science.gov (United States)

    Liehr, S.; Pawelzik, K.

    2001-04-01

    Assuming that financial markets behave similar to random walk processes we derive a trading strategy with variable investment which is based on the equivalence of the period of bankruptcy risk and the risk to profit ratio. We define a state dependent predictability measure which can be attributed to the deterministic and stochastic components of the price dynamics. The influence of predictability variations and especially of short term inefficiency structures on the optimal amount of investment is analyzed in the given context and a method for adaptation of a trading system to the proposed objective function is presented. Finally we show the performance of our trading strategy on the DAX and S&P 500 as examples for real world data using different types of prediction models in comparison.

  13. Accounting Ratios and Bankruptcy Prediction: Woolworths Geoup PLC as A Case Study

    OpenAIRE

    Okuguni, Anthony I

    2012-01-01

    ABSTRACT This research attempts to ascertain the predictive ability of accounting ratios using Woolworths Group plc. This was achieved by carrying out Financial Ratio Analysis, Altman Z-score, Robertson R-ratio and Trend Analysis of Woolworths Group plc. In addition, the causes of bankruptcy at Woolworths Group plc would be ascertained. Finally the research would use mathematical models to ascertain the predictability of bankruptcy at Woolworths Group plc. The main findings of this re...

  14. Firms’ capital structure and the bankruptcy law design:e vidence from Brazil

    OpenAIRE

    Bruno Funchal; Mateus Clóvis

    2009-01-01

    This paper studies the effect of changes in creditors? priority order defined by the bankruptcy law on firms? capital structure. Taking advantage of the Brazilian bankruptcy law Reform and using firms? balance sheet data, we obtain results in line with theories that predict the effects on the capital structure due to changes in creditors? expectations. We find evidence of an increase in the debt portion of the capital structure.

  15. A New Hybrid Algorithm for Bankruptcy Prediction Using Switching Particle Swarm Optimization and Support Vector Machines

    OpenAIRE

    Yang Lu; Nianyin Zeng; Xiaohui Liu; Shujuan Yi

    2015-01-01

    Bankruptcy prediction has been extensively investigated by data mining techniques since it is a critical issue in the accounting and finance field. In this paper, a new hybrid algorithm combining switching particle swarm optimization (SPSO) and support vector machine (SVM) is proposed to solve the bankruptcy prediction problem. In particular, a recently developed SPSO algorithm is exploited to search the optimal parameter values of radial basis function (RBF) kernel of the SVM. Th...

  16. Can bankruptcy law discriminate between heterogeneous firms when information is incomplete ? The case of legal sanctions

    OpenAIRE

    Régis Blazy

    2004-01-01

    We study conditions under which legal sanctions may lead to an efficient selection of heterogeneous investment projects. The bankruptcy code is a "primitive creditor system" and financial distress leads to an arbitration between private agreement and costly formal bankruptcy. We consider a standard debt contract between a bank and a small firm, both risk-neutral. There are two types of leveraged firms in the economy: profitable firms and non-profitable ones. Before the debt repayment time, fi...

  17. The losses suffered by creditors in bankruptcy in the UK and Germany

    OpenAIRE

    O'Neil, B. S.

    1991-01-01

    There has been much interest in finance theory in the question of how they cost of bankruptcy influences the firm's capital structure. Authors such as Modigliani and Miller (1956), Stiglitz (1969), Bulow and Shoven (1978), Titman (1984) and Barnea, Haugen and Senbet (1984) have provided much theoretical analysis. However, very few empirical studies have been conducted. Notable exceptions are those by Warner (1977) and Altman (1984). These studies looked only at bankruptcy cases in the US. One...

  18. Strategic or Non-Strategic: The Role of Financial Benefit in Bankruptcy

    OpenAIRE

    Li Gan; Tarun Sabarwal; Shuoxun Zhang

    2014-01-01

    A partial test for strategic behavior in bankruptcy filing may be formulated by testing whether consumers manipulate their debt and filing decision jointly, or not: that is, testing for endogeneity of financial benefit and the bankruptcy filing decision. Using joint maximum likelihood estimation of an extended discrete choice model, test results are consistent with non-strategic filing: financial benefit is exogenous to the filing decision. This result is confirmed in two different datasets (...

  19. The Role of Path Dependence in the Development of U.S. Bankruptcy Law, 1880-1938

    OpenAIRE

    Bradley A. Hansen; Mary Eschelbach Hansen

    2005-01-01

    This paper provides an illustration of the mechanisms that can give rise to path dependence in legislation. Specifically it shows how debtor-friendly bankruptcy law arose in the United States as a result of a path dependent process. The 1898 Bankruptcy Act was not regarded as debtor-friendly at the time of its enactment, but the enactment of the law gave rise to changes in interest groups, beliefs about the purpose of bankruptcy law, and political party positions on bankruptcy that set the Un...

  20. FINANCIAL FUTURE PROSPECT INVESTIGATION USING BANKRUPTCY FORECASTING MODELS IN HUNGARIAN MEAT PROCESSING INDUSTRY

    Directory of Open Access Journals (Sweden)

    Dalma Peto

    2015-07-01

    Full Text Available Our main research topic is the analysis of leading companies in the Hungarian meat processing industry in terms of liquidity criteria. We examine this scientific subject by application of financial indicators and several important bankruptcy forecasting models. In our thesis the emphasis is placed on the presentation and evaluation of business failure models. The topicality of the research subject is rooted in the economic crisis and recession, which made solvency a key issue. Maintaining the competitive position in the market and the ability to stay in competition depend on the capability to generate an appropriate level of net operative cash flow. The most important research questions are the following. Which financial methods can be used to predict and estimate the situation when a company is facing bankruptcy? Do bankruptcy forecasting models provide accurate forecasts and what conclusions can be drawn based on these results? In our study we present the actual economic situation and the main problems of the sector, select the sample companies, calculate and compare the applied financial ratios and the most relevant bankruptcy forecasting models. On the basis of annual reports concerning 2010-2013 interval we investigate the financial position of leading pork processing companies. We make a comprehensive and comparative analysis concerning capital structure, liquidity, and profitability; consequently identify risky processes and companies having high probability of insolvency. Finally, we demonstrate and evaluate the results of three traditional bankruptcy forecasting models (Altman, Springate, and Fulmer and four modern models (DA, LR, industrial DA and industrial LR.

  1. INSOLVENCY VERSUS BANKRUPTCY: ADVANTAGES AND DISADVANTAGES OF THE PROCEDURE

    Directory of Open Access Journals (Sweden)

    PAULINA DINA

    2013-05-01

    Full Text Available The analysis of the development of the phenomenon in Romania has the role to highlight the trend that has been followed by the number of organisational entities that have been affected by the insolvency phenomenon in Romania, the distribution by counties and regions of the number of insolvency cases as well as the activity sectors that have been most affected by this phenomenon. At the same time, in order to provide an overall picture regarding the size of the insolvency phenomenon in Romania, organisational entities with extremely high turnovers have been given as examples, (legal entities entities which, since 2008 up to the present moment, have been crossing one of the stages of the insolvency procedure. Some of them have been applied the simplified insolvency procedure, since they didn’t have the possibility to reorganise, and others, fewer in number, have used insolvency as a „rescue boat”, following the general insolvency procedure and entering a reorganisation process, in the attempt to avoid bankruptcy.

  2. 75 FR 8747 - Revision of Certain Dollar Amounts in the Bankruptcy Code Prescribed Under Section 104(A) of the...

    Science.gov (United States)

    2010-02-25

    ... UNITED STATES Revision of Certain Dollar Amounts in the Bankruptcy Code Prescribed Under Section 104(A...: Francis F. Szczebak, Chief, Bankruptcy Judges Division, Administrative Office of the United States Courts, Washington, DC 20544, telephone (202) 502-1900 or by e-mail at...

  3. 78 FR 43205 - Federal Acquisition Regulation; Submission for OMB Review; Bankruptcy (FAR Subpart 42.9; 52.242-13)

    Science.gov (United States)

    2013-07-19

    ... approved information collection requirement concerning Bankruptcy. A notice was published in the Federal Register at 77 FR 73660, December 11, 2012. No comments were received. DATES: Submit comments on or before... Regulation; Submission for OMB Review; Bankruptcy (FAR Subpart 42.9; 52.242-13) AGENCY: Department of...

  4. Bankruptcy prediction using SVM models with a new approach to combine features selection and parameter optimisation

    Science.gov (United States)

    Zhou, Ligang; Keung Lai, Kin; Yen, Jerome

    2014-03-01

    Due to the economic significance of bankruptcy prediction of companies for financial institutions, investors and governments, many quantitative methods have been used to develop effective prediction models. Support vector machine (SVM), a powerful classification method, has been used for this task; however, the performance of SVM is sensitive to model form, parameter setting and features selection. In this study, a new approach based on direct search and features ranking technology is proposed to optimise features selection and parameter setting for 1-norm and least-squares SVM models for bankruptcy prediction. This approach is also compared to the SVM models with parameter optimisation and features selection by the popular genetic algorithm technique. The experimental results on a data set with 2010 instances show that the proposed models are good alternatives for bankruptcy prediction.

  5. Considerations on the Methods of Prediction of an Entity’s Bankruptcy

    Directory of Open Access Journals (Sweden)

    Trifan A.

    2009-12-01

    Full Text Available Assessing and evaluating the financial health of an entity requires assessing the risks accompanying the activity, some of which indicate vulnerability, while others predict bankruptcy.The study of the bankruptcy causes has shown that this phenomenon is a consequence of the progressive degradation of the entity’s financial situation and may be predictable long enough before its appearance by means of some accounting and banking methods.To what extent do these methods allow the detection of the signals of degradation, which anticipate the bankruptcy? Is it enough to use just a single method? Is it necessary to combine several methods of analysis? These are some questions that support the desirability of this theme.

  6. Bankruptcy Law and The Cost of Credit: The Impact of Cramdown on Mortgage Interest Rates

    OpenAIRE

    Goodman, Joshua Samuel; Levitin, Adam Jeremiah

    2012-01-01

    The role of bankruptcy law in credit markets has received renewed attention in the aftermath of the housing bubble collapse. The fundamental challenge for research on this topic is to separate the impact of legal factors from other features of the credit environment. We do so by exploiting historical variation in federal judicial rulings regarding whether Chapter 13 bankruptcy filers could reduce the principal owed on a home loan to the home’s market value. The practice, known as cramdown, ...

  7. Why do spanish firms rarely use the bankruptcy system? The role of the mortgage institution

    OpenAIRE

    Miguel García-Posada; Juan S. Mora-Sanguinetti

    2012-01-01

    Taking advantage of a rich database of more than 1 million companies in Spain, France and the U.K., we propose and test a hypothesis to explain why Spain has one of the world’s lowest business bankruptcy rates, even during the current economic crisis and after controlling for market exit rates. This hypothesis is based on two premises, the low efficiency of the Spanish bankruptcy system relative to that of an alternative insolvency institution, the mortgage system, and the unattractiveness of...

  8. Using Quantitative Data Analysis Techniques for Bankruptcy Risk Estimation for Corporations

    Directory of Open Access Journals (Sweden)

    Ştefan Daniel ARMEANU

    2012-01-01

    Full Text Available Diversification of methods and techniques for quantification and management of risk has led to the development of many mathematical models, a large part of which focused on measuring bankruptcy risk for businesses. In financial analysis there are many indicators which can be used to assess the risk of bankruptcy of enterprises but to make an assessment it is needed to reduce the number of indicators and this can be achieved through principal component, cluster and discriminant analyses techniques. In this context, the article aims to build a scoring function used to identify bankrupt companies, using a sample of companies listed on Bucharest Stock Exchange.

  9. AGU continues 2003 journal access for libraries affected by RoweCom bankruptcy

    Science.gov (United States)

    Lifland, Jonathan

    Following the default of one of its major journal subscription agents, AGU has committed itself to providing campus-wide electronic access for 2003 to libraries whose journal orders are affected by the bankruptcy. The company, RoweCom Inc. of Westwood, Massachusetts, filed for Chapter 11 protection on 27 January 2003.RoweCom folded in December with nearly $80 million in unfulfilled orders which were destined to thousands of publishers. Subscription agents consolidate orders from libraries and transmit payments to publishers for journal subscriptions. The bankruptcy could cost AGU up to $700,000 in lost revenue in 2003, approximately 7% of AGU's gross institutional subscriptions.

  10. FINANCIAL PERFORMANCE ANALYSIS AND BANKRUPTCY PREDICTION IN HUNGARIAN DAIRY SECTOR

    Directory of Open Access Journals (Sweden)

    Rozsa Andrea

    2014-07-01

    The preliminary sample for the analysis is framed on the basis of three criteria: amount of the subscribed capital, sales revenues and product structure. Those companies are regarded as competitors that have subscribed capitals in excess of HUF 250 million, consistently high levels of sales revenues and diversified product structures. The preliminary sample consists of 7 companies. In 2012, their total sales revenues were as high as about 50% of the overall amount of sales revenues in the sector. Three of the 7 companies are possessed by foreign owners in full or part, whereas 4 of them belong to Hungarian owners. In 2012, Hungarian-owned companies covered more than one-third of the combined sales revenues of the 7 leading companies. Hence, the competitive positions of these 4 companies based on their financial positions are examined. These calculations have relied on the annual reports for the period of 2008–2012 (balance sheets, income statements, cash flow statements. The research has implemented a comprehensive and comparative financial analysis. The main question is what the key financial characteristics of the Hungarian-owned companies are. Financial indicators are calculated and their time-series analysis is accomplished to describe the sample companies’ capital structures, liquidity and profitability. Using comparative analysis of the applied financial ratios the study determines (1 which company has the most advantageous financial conditions for the successful operation; (2 which companies have disadvantageous financial situation; and (3 which companies are in potential financial distress situation. Potential bankruptcy positions are examined by the applications of Altman and Springate models.

  11. Impact of Owner-Occupied Property Valuation by Historical Cost on Fixed Assets Value at Bankruptcy Risk

    Directory of Open Access Journals (Sweden)

    Kinga Bauer

    2015-06-01

    Full Text Available Purpose: The purpose of this article is to present the findings of the author’s own studies on the influence of owner-occupied property valuation by historical cost on fixed assets value of entities at risk of bankruptcy. Methodology: As part of the implementation of the study, objective desk research was carried out. Empirical research was carried out on a group of 100 companies on which the courts had declared bankruptcy. The study sample constituted 14% of all bankruptcy cases in 2011 and was a significant representation of the national phenomenon. Findings: The findings indicated that historical cost values of owner-occupied properties in most cases are significantly lower that estimated fair value when business activities continuation is threatened. The historical cost valuation also does not provide useful information about the market value of property, plant and equipment of entities at risk of bankruptcy that do not possess real estate. Research limitations/implications: Information about market value of fixed assets of entities at risk of bankruptcy is essential in making the decision to begin bankruptcy roceedings and estimating the ability to repay debts to creditors. Originality/value: The results are a part of the author’s own study concerning assets valuation when business activities continuation is threatened. The results emphasize the role of fair value estimation of property, plant and equipment when an entity is at risk of bankruptcy.

  12. Washington State cancer patients found to be at greater risk for bankruptcy than people without a cancer diagnosis.

    Science.gov (United States)

    Ramsey, Scott; Blough, David; Kirchhoff, Anne; Kreizenbeck, Karma; Fedorenko, Catherine; Snell, Kyle; Newcomb, Polly; Hollingworth, William; Overstreet, Karen

    2013-06-01

    Much has been written about the relationship between high medical expenses and the likelihood of filing for bankruptcy, but the relationship between receiving a cancer diagnosis and filing for bankruptcy is less well understood. We estimated the incidence and relative risk of bankruptcy for people age twenty-one or older diagnosed with cancer compared to people the same age without cancer by conducting a retrospective cohort analysis that used a variety of medical, personal, legal, and bankruptcy sources covering the Western District of Washington State in US Bankruptcy Court for the period 1995-2009. We found that cancer patients were 2.65 times more likely to go bankrupt than people without cancer. Younger cancer patients had 2-5 times higher rates of bankruptcy than cancer patients age sixty-five or older, which indicates that Medicare and Social Security may mitigate bankruptcy risk for the older group. The findings suggest that employers and governments may have a policy role to play in creating programs and incentives that could help people cover expenses in the first year following a cancer diagnosis. PMID:23676531

  13. On the Switching Mechanism of Bankruptcy Proceedings%论破产程序的转换机制

    Institute of Scientific and Technical Information of China (English)

    华吉红

    2012-01-01

    Compared with the old "bankruptcy law", the country's new bankruptcy law explicitly prescribed that bankruptcy settlement procedures, the restructuring procedure and the liquidation procedures are mutually independent. Considering current situation of bankruptcy law research , most scholars focus their research on a single program. There are few scholars studying bankruptcy procedure with a global vision to explore the relationship between the three bankruptcy procedures and their switching mechanism. The three Bankruptcy procedures are a unified whole. Effective programs can greatly reduce the risks faced by a party in bankruptcy when choosing a procedure, develop the function of the bankruptcy law, and safeguard the interests of the creditor and the debtor.%相较于旧《破产法》,我国新《破产法》明确规定破产和解程序、重整程序及清算程序互为独立。从破产法的研究现状来看,多数学者着眼于单个程序的研究,很少有学者用全局的眼光来研究破产程序,探寻三大破产程序之间的关系及其转换机制。破产法三大程序是统一的整体,有效的程序转换机制能够大大降低破产当事人在程序选择上面临的风险,更好地发挥破产法的功能,更有力地维护破产债权人及债务人的利益。

  14. One Debt-Financing Option May Increase Risk of College Bankruptcies

    Science.gov (United States)

    Basken, Paul

    2008-01-01

    A common type of variable-rate financing has suddenly increased the risk of bankruptcy for an unknown number of colleges, said two experts at credit-rating agencies. The threat affects mostly less-wealthy colleges that have used variable-rate bonds either to get a better price when borrowing or because they lacked bond ratings and had little other…

  15. "Bankruptcy Law, Corporate Finance, and Corporate Revival Process in Japan"(in Japanese)

    OpenAIRE

    Noriyuki Yanagawa; Sumio Hirose; Fumio Akiyoshi

    2005-01-01

    This paper examines corporate revival processes in Japan. In recent years, corporate revival processes are drastically changing in Japan. For example, important bankruptcy laws have been revised and Industrial Revitalization Corporation was established. Moreover, many corporate revival funds are actively investing. This paper explains those new movements and examines how those new activities will change the Japanese economy.

  16. The Permissibility of Withholding Transcripts under Bankruptcy Law. NACUA Publication Series. Second Edition.

    Science.gov (United States)

    McDaniel, Diane L.; Tanaka, Paul

    This pamphlet summarizes the legal restraints that affect the right of colleges and universities to withhold transcripts as a means of collecting student debts under the Bankruptcy Code of the United States which provides for restraint on the actions of creditors. An introductory section notes that there are three kinds of relevant bankruptcies…

  17. 34 CFR 682.510 - Determination of the borrower's death, total and permanent disability, or bankruptcy.

    Science.gov (United States)

    2010-07-01

    ... 34 Education 3 2010-07-01 2010-07-01 false Determination of the borrower's death, total and permanent disability, or bankruptcy. 682.510 Section 682.510 Education Regulations of the Offices of the Department of Education (Continued) OFFICE OF POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION FEDERAL FAMILY EDUCATION LOAN (FFEL) PROGRAM...

  18. Withholding Transcripts for Non-Payment of Educational Debts: Before and after Bankruptcy.

    Science.gov (United States)

    Balkins, A. James

    1979-01-01

    Discusses the legal obstacles, especially in view of the Bankruptcy Reform Act of 1978, to the practice of withholding transcripts from students who owe debts to a college or university. Available from Willamette University College of Law, Salem, OR 97301. (Author/IRT)

  19. Bankruptcy--Student Loans--Private College's Refusal to Release Transcripts.

    Science.gov (United States)

    Rapp, Larry G.

    1978-01-01

    In Girardier vs Webster College the court held that a private college may refuse to release college transcripts if students have not repaid their National Defense Education Act loans even though they've declared bankruptcy, and that no private remedy could be inferred under the Family Educational Rights and Privacy Act of 1974. Implications are…

  20. Costs and recovery rates in the Dutch liquidation-based bankruptcy system

    NARCIS (Netherlands)

    Couwenberg, Oscar; de Jong, Abe

    2008-01-01

    We present evidence on the efficiency of the resolution of financial distress in bankruptcy in The Netherlands. Direct costs average 16%, firm recovery 37% and bank debt recovery 80%. The direct costs are lower in larger firms and in firms with more bank debt. Costs increase with the time it takes t

  1. 77 FR 30025 - Meeting of the Judicial Conference Advisory Committee on Rules of Bankruptcy Procedure

    Science.gov (United States)

    2012-05-21

    ... From the Federal Register Online via the Government Publishing Office JUDICIAL CONFERENCE OF THE UNITED STATES Meeting of the Judicial Conference Advisory Committee on Rules of Bankruptcy Procedure AGENCY: Judicial Conference of the United States. ACTION: Notice of open meeting. SUMMARY: The...

  2. 75 FR 44890 - Operation, in the Ordinary Course, of a Commodity Broker in Bankruptcy

    Science.gov (United States)

    2010-07-30

    ....'' \\13\\ \\11\\ 74 FR 66598, 66600 (Dec. 16, 2009). \\12\\ FIA CL02 at 5. \\13\\ Id. As each bankruptcy is... permission of the Commission. \\1\\ 74 FR 66598 (Dec. 16, 2009). The public comment period on the Notice ended...-60134-rdd, Docket No. 5 (Bankr. S.D.N.Y. Nov. 25, 2005); see also 74 FR 66598, 66599 (Dec. 16, 2009)....

  3. Health issues and health care expenses in Canadian bankruptcies and insolvencies.

    Science.gov (United States)

    Himmelstein, David U; Woolhandler, Steffie; Sarra, Janis; Guyatt, Gordon

    2014-01-01

    Illness can contribute to financial problems directly, through high medical bills, and indirectly, through lost income. No previous in-depth studies have documented the role of medical problems among Canadian bankruptcy filers. We obtained the bankruptcy filings from a random sample of 5,000 debtors across Canada and mailed surveys to them seeking information about the medical antecedents of their bankruptcy. A total of 521 debtors responded (response rate of 10.4%), of whom 40.1 percent reported losing at least two weeks of work-related income because of illness or injury in the two years before their filing; 8.3 percent reported a similar income loss because of caregiving responsibilities for someone else who was ill. Although 60.1 percent of respondents reported being responsible for a medical bill within the previous two years, only 6.9 percent had bills over $5,000 (all amounts in Canadian Dollars). Prescription drugs were cited as the costliest medical expense by two-thirds of debtors reporting bills > $5,000, with dental bills cited by 22.2 percent. Universal health insurance affords Canadians protection against ruinous doctor and hospital bills. Inadequate coverage for prescription drugs and dental care, however, leaves some with unaffordable out-of-pocket costs. In addition, illness is a frequent indirect cause of bankruptcy through loss of work-related income. PMID:24684082

  4. On the History of Bankruptcy Crime in German%德国破产刑法历史之考察

    Institute of Scientific and Technical Information of China (English)

    行江

    2014-01-01

    The earliest provisions of bankruptcy offence originated in Germany in the 16th Century. In the 17th and 18th century the differences between the fraudulent bankruptcy and simple bankruptcy in case were confirmed in the Prussian General Land law in 1794. The bankruptcy offenses were first provided in the Prussian Penal Code in 1851 which occupied an important position in Germany history. The bankruptcy crime in the Imperial Penal Code of 1871 was receipted completely by The Imperial Bankruptcy Act of 1877. By the First law to combat economic crime in 1976, the bankruptcy crimes were reintegrated into the Criminal Code and bankruptcy crimes have been specified always in the Criminal Code. Bankruptcy crimes were modified by the Implementation of bankruptcy Act in 1999 which was the foundation of the existing bankruptcy crimes.%德国破产罪行规定最早产生于16世纪中期。17世纪和18世纪判例中体现的欺诈破产与简单破产的不同,最终在1794年《普鲁士国家的普通邦法》中得到确认。1851年的《普鲁士刑法典》第一次在刑法典中规定了破产罪行,从而在历史上占有重要地位。1877年德国《破产法》中破产罪行规定,直接把1871年《帝国刑法典》中相应内容移换到其中。1976年第一次经济犯罪对策法改革之后,又将破产罪行规定在刑法典中。此后破产罪行一直规定在刑法典中。1999年《破产法施行法》对破产罪行的修改,奠定了现行破产刑法的基础。

  5. On the History of Bankruptcy Crime in German%德国破产刑法历史之考察

    Institute of Scientific and Technical Information of China (English)

    行江

    2014-01-01

    德国破产罪行规定最早产生于16世纪中期。17世纪和18世纪判例中体现的欺诈破产与简单破产的不同,最终在1794年《普鲁士国家的普通邦法》中得到确认。1851年的《普鲁士刑法典》第一次在刑法典中规定了破产罪行,从而在历史上占有重要地位。1877年德国《破产法》中破产罪行规定,直接把1871年《帝国刑法典》中相应内容移换到其中。1976年第一次经济犯罪对策法改革之后,又将破产罪行规定在刑法典中。此后破产罪行一直规定在刑法典中。1999年《破产法施行法》对破产罪行的修改,奠定了现行破产刑法的基础。%The earliest provisions of bankruptcy offence originated in Germany in the 16th Century. In the 17th and 18th century the differences between the fraudulent bankruptcy and simple bankruptcy in case were confirmed in the Prussian General Land law in 1794. The bankruptcy offenses were first provided in the Prussian Penal Code in 1851 which occupied an important position in Germany history. The bankruptcy crime in the Imperial Penal Code of 1871 was receipted completely by The Imperial Bankruptcy Act of 1877. By the First law to combat economic crime in 1976, the bankruptcy crimes were reintegrated into the Criminal Code and bankruptcy crimes have been specified always in the Criminal Code. Bankruptcy crimes were modified by the Implementation of bankruptcy Act in 1999 which was the foundation of the existing bankruptcy crimes.

  6. PROCEDURAL AND METHODOLOGICAL ASPECTS REGARDING THE INVESTIGATION OF THE FRAUDULENT BANKRUPTCY INFRACTION

    Directory of Open Access Journals (Sweden)

    Mihai Adrian Hotca

    2008-01-01

    Full Text Available The investigation of the fraudulent bankruptcy infractions implies the thorough knowledge of the penal procedural norms, because these infractions present a particular feature due to the way they are committed, extremely elaborated and sophisticated. The revealing of the bankruptcy infractions, the collection and administration of the evidences, the doers’ identification and catching, the taking of the procedural measures and finally their holding responsible represent an activity that has to be carried on by observing the norms of the penal procedural law. The specialty authors pay more and more attention to the methodological elements regarding the criminalistic investigation of the infractions in the business domain, and it is talking about the „banditry of the business”.

  7. Interactions between Corporate Governance, Bankruptcy Law and Firms Debt Financing: the Brazilian Case

    Directory of Open Access Journals (Sweden)

    Bruno Funchal

    2008-07-01

    Full Text Available This paper examines the relationship between corporate governance level and the bankruptcy law for such debt variables as firms’ cost of debt and amount (and variation of debt. Our empirical results are consistent with the model's prediction. First, we find that the better the corporate governance, the lower the cost of debt. Second, we find that better corporate governance arrangements relate to firms with higher amounts of debt. Finally we find that better governance and harsher bankruptcy laws have a positive effect on debt. Moreover, this effect is stronger for firms with worse corporate governance, which indicates that the law works as a substitute for governance practices to protect creditors' interests.

  8. Bankruptcy Problem Approach to Load-Shedding in Agent-Based Microgrid Operation

    Science.gov (United States)

    Kim, Hak-Man; Kinoshita, Tetsuo; Lim, Yujin; Kim, Tai-Hoon

    Research, development, and demonstration projects on microgrids have been progressed in many countries. Furthermore, microgrids are expected to introduce into power grids as eco-friendly small-scale power grids in the near future. Load-shedding is a problem not avoided to meet power balance between power supply and power demand to maintain specific frequency such as 50 Hz or 60 Hz. Load-shedding causes consumers inconvenience and therefore should be performed minimally. Recently, agent-based microgrid operation has been studied and new algorithms for their autonomous operation including load-shedding has been required. The bankruptcy problem deals with distribution insufficient sources to claimants. In this paper, we approach the load-shedding problem as a bankruptcy problem and adopt the Talmud rule as an algorithm. Load-shedding using the Talmud rule is tested in islanded microgrid operation based on a multiagent system.

  9. THE AUTHORITY TO FILE BANKRUPTCY PETITIONS AFTER THE ESTABLISHMENT OF INDONESIA’S FINANCIAL SERVICES AUTHORITY

    Directory of Open Access Journals (Sweden)

    Erma Defiana Putriyanti

    2015-10-01

    Full Text Available The transfer in the functions, duties, and authority for regulation and supervision as stipulated in Article 55 of the Act concerning the Financial Services Authority (OJK does not include the transfer of authority in filing a petition for bankruptcy. The authority to file a bankrupty petition against a debtor in the financial services sector still refers to Article 2 paragraph (3 to (5 Act No. 37 of 2004 concerning Bankruptcy and Suspension of Payment. Peralihan fungsi, tugas dan kewenangan pengaturan dan pengawasan sebagaimana dimaksud dalam Pasal 55 Undang-undang tentang Otoritas Jasa Keuangan (OJK tidak termasuk peralihan kewenangan pengajuan pailit. Kewenangan untuk mengajukan permohonan pailit terhadap debitor yang bergerak dibidang jasa keuangan tetap mengacu pada Pasal 2 ayat (3 sampai (5 Undang-Undang Nomor 37 Tahun 2004 tentang Kepailitan dan PKPU.

  10. A new bankruptcy method for conflict resolution in water resources allocation.

    Science.gov (United States)

    Mianabadi, Hojjat; Mostert, Erik; Zarghami, Mahdi; van de Giesen, Nick

    2014-11-01

    Growing competition over water resources has caused political disputes among stakeholders and has brought conflict resolution in the focus of negotiation processes. In these cases, bankruptcy rules for redistributing an asset when it is not sufficient to meet all claims could be applied. In this paper, we develop a new bankruptcy rule for water resources problems that considers agents' contribution to the total resources as well as their claims, which is in accordance with the UN Watercourses Convention (1997), as important factors for reallocation. Using the Euphrates River and a hypothetical case from the literature as examples, the new rule is compared with four alternative rules. The results show that the novel solution is potentially more powerful to help solving conflicts over river sharing problems. PMID:24945702

  11. A HYBRID MODEL FOR BANKRUPTCY PREDICTION USING GENETIC ALGORITHM, FUZZY C-MEANS AND MARS

    Directory of Open Access Journals (Sweden)

    A.Martin

    2011-05-01

    Full Text Available Bankruptcy prediction is very important for all the organization since it affects the economy and rise manysocial problems with high costs. There are large number of techniques have been developed to predict thebankruptcy, which helps the decision makers such as investors and financial analysts. One of thebankruptcy prediction models is the hybrid model using Fuzzy C-means clustering and MARS, which usesstatic ratios taken from the bank financial statements for prediction, which has its own theoreticaladvantages. The performance of existing bankruptcy model can be improved by selecting the best featuresdynamically depend on the nature of the firm. This dynamic selection can be accomplished by GeneticAlgorithm and it improves the performance of prediction model. .

  12. A HYBRID MODEL FOR BANKRUPTCY PREDICTION USING GENETIC ALGORITHM, FUZZY C-MEANS AND MARS

    OpenAIRE

    Martin, A.; Gayathri, V.; G Saranya; Gayathri, P.; Prasanna Venkatesan

    2011-01-01

    Bankruptcy prediction is very important for all the organization since it affects the economy and rise manysocial problems with high costs. There are large number of techniques have been developed to predict thebankruptcy, which helps the decision makers such as investors and financial analysts. One of thebankruptcy prediction models is the hybrid model using Fuzzy C-means clustering and MARS, which usesstatic ratios taken from the bank financial statements for prediction, which has its own t...

  13. Endogenous Credit Constraints and Factor Market Rigidities: the case of Bankruptcy

    OpenAIRE

    Fischer, R.; Bonilla, C.

    2004-01-01

    We develop a simple analytical model that highlights the effect of factor rigidities and credit constraints on bankruptcies. In our model, entrepreneurs receive random shocks –positive or negative-- to their working capital, which is needed to pay workers before the output of the firm is sold. If an entrepreneur receives a shock that lowers his working capital sufficiently, she requires loans in order to pay workers and continue operating. However, if the level of working capital is too low...

  14. FINANCIAL FUTURE PROSPECT INVESTIGATION USING BANKRUPTCY FORECASTING MODELS IN HUNGARIAN MEAT PROCESSING INDUSTRY

    OpenAIRE

    Dalma Peto; Andrea Rozsa

    2015-01-01

    Our main research topic is the analysis of leading companies in the Hungarian meat processing industry in terms of liquidity criteria. We examine this scientific subject by application of financial indicators and several important bankruptcy forecasting models. In our thesis the emphasis is placed on the presentation and evaluation of business failure models. The topicality of the research subject is rooted in the economic crisis and recession, which made solvency a key issue. Maintaining the...

  15. An Early Warning System for Bankruptcy Prediction: lessons from the Venezuelan Bank Crisis

    OpenAIRE

    Trigo, Loren; Costanzo, Sabatino; Gonzalez, Felix; Llamozas, Jose

    2007-01-01

    During 1993-94 Venezuela experienced a severe banking crisis which ended up with 18 commercial banks intervened by the government. Here we develop an early warning system for detecting credit related bankruptcy through discriminant functions developed on financial and macroeconomic data predating the crisis. A robustness test performed on these functions shows high precision in error estimation. The model calibrated on pre-crisis data could detect abnormal financial tension in the late Banco ...

  16. A Cayman Islands Perspective on Transborder Insolvencies and Bankruptcies: The Case for Judicial Co-Operation

    OpenAIRE

    Anthony Smellie

    2012-01-01

    The freedom of movement of capital in the modern global economy has been indispensable to the development of international corporate enterprise. This paper argues that the judicial and legal institutions of states are as essential to the stability of the global economy as the traditionally heralded international economic channels that have been so carefully crafted globally. In fact, in the sphere of trans-border insolvency and bankruptcy, judicial and legal institutions could be perceived as...

  17. A Real Options Approach to Bankruptcy Costs: Evidence from Failed Commercial Banks During the 1990s

    OpenAIRE

    Joseph R. Mason

    2002-01-01

    Literature to date has identified three main aspects of liquidation time: firm size, asset specificity, and industry concentration. The present paper unifies the theory behind these three aspects of bankruptcy costs by treating them as components of a broader option valuation problem faced by the liquidating trustee. In the options valuation framework, at time t the trustee may choose to 1) liquidate at current asset values and incur a known loss, or 2) hold until the next period t+1 at a pos...

  18. Personal Bankruptcy: Reconciling Adverse Events and Strategic Timing Hypotheses Using Heterogeneity in Filing Types

    OpenAIRE

    Li Gan; Tarun Sabarwal; Shuoxun Zhang

    2010-01-01

    The strategic timing and adverse events hypotheses of personal bankruptcy have received particular attention. Existing research focuses on proving or disproving either hypothesis, using a strict interpretation of the role of financial benefit in the filing decision. Using a more realistic framework in which financial benefit may affect the filing decision in both hypotheses, we show that endogeneity of financial benefit is a distinguishing factor between the two hypotheses. Using two differen...

  19. Beyond Failure and Forgiveness: The Debtor's Place in American Fiscal Identity, Bankruptcy, and Capitalism

    OpenAIRE

    Coco, Linda Elizabeth

    2011-01-01

    This dissertation is based on six years of original field research in the bankruptcy legal field. It explores the dominant discourses that function as controlling processes for individual fiscal agents within the American free-market system--a system based in credit structures and debt relations. The ways these individual fiscal agents are viewed impacts the behaviors, attitudes and perceptions of the place they inhabit within the social system. This dissertation demonstrates the impact of En...

  20. The Lehman Brothers Bankruptcy C: Managing the Balance Sheet through the Use of Repo 105

    OpenAIRE

    Rosalind Z. Wiggins; Andrew Metrick

    2014-01-01

    Anton R. Valukas, the Lehman Brothers court-appointed bankruptcy examiner, produced a 2,200-page report detailing possible claims that the estate might pursue, and he identified several, from company officers to its independent auditors. The most startling revelation of the report, however, was that, during its last year, Lehman had relied heavily on an unusual financing transaction—Repo 105. The examiner concluded that Lehman’s aggressive use of Repo 105 transactions enabled it to remove up ...

  1. The New Italian Bankruptcy Law: The Right Way to Reform Insolvency Procedures

    OpenAIRE

    Succurro Marianna

    2012-01-01

    The recent Italian Bankruptcy Reform (d.lgs. 9 gennaio 2006, n. 5) has been adopted to modify the old insolvency system, existing since 1942, in order to facilitate the resolution of firms' distress through the implementation of faster insolvency procedures and an increasing adoption of the reorganization plans. The first part of the research shows the insolvencies in some European countries over the last decade and the trend of the main Italian insolvency procedures. The second part of the p...

  2. MODELING OF A STRUCTURED PLAN OF ACCOUNTS IN PROCEDURES OF INSOLVENCY AND BANKRUPTCY

    Directory of Open Access Journals (Sweden)

    Chalenko R. V.

    2014-02-01

    Full Text Available The article details the problems of constructing a structured plan of accounts in bankruptcy and insolvency proceedings. The proposed model is based on two principal positions, first structured chart of accounts has its own dimension, and secondly, it is built on the principles of architectonics. Architectonics constructing structured chart of accounts allows you to integrate managerial, strategic, transactional accounting and making accounting transparent and efficient

  3. Dynamic effects of a foot-and-mouth disease outbreak: introducing farm bankruptcy risk

    OpenAIRE

    Gohin, Alexandre; Cordier, Jean; Krebs, Stéphane; Robert, Marc

    2009-01-01

    In FMD free countries, the occurrence of a FMD outbreak is a rare event with potentially large economic losses. In this paper we explore the dynamic effects of a FMD outbreak taking into account the largely neglected issue of farm bankruptcy. We find complex dynamic effects when the farm credit market suffers from information imperfections leading to farm closure. Welfare effects are also dramatically altered when these farm credit imperfections are acknowledged. Domestic consumers loose in t...

  4. THE INFLUENCE OF SAMPLE SIZE AND SELECTION OF FINANCIAL RATIOS IN BANKRUPTCY MODEL ACCURACY

    OpenAIRE

    Yusuf Ali Al-Hroot

    2015-01-01

    This paper aims to clarify the influence of changing both the sample size and selection of financial ratios in bankruptcy models accuracy of companies listed in the industrial sector of Jordan. The study sample is divided into three sub-samples counting 6, 10 and 14 companies respectively; each sample is composed of bankrupt companies and the solvent ones during the period from 2000 to 2013. Financial ratios were calculated and categorized into two groups. The first group includes: liquidity,...

  5. Bankruptcy as an exit mechanism for systems with a variable number of components

    Science.gov (United States)

    Delli Gatti, Domenico; Di Guilmi, Corrado; Gaffeo, Edoardo; Gallegati, Mauro

    2004-12-01

    Dynamical systems with components whose sizes evolve according to multiplicative stochastic rules have been recently combined with entry and exit processes. We show that the assumptions usually made in modeling exits are at odds with the available evidence. We discuss a recently proposed macroeconomic model with random multiplicative shocks and a mechanism for exit based on bankruptcy, which displays several observed stylized facts for firms' dynamics, like power law distributions for firms' sizes and Laplace distributions for firms' growth rates.

  6. METHOD OF ANALYSIS OF FINANCIAL CONDITION AND EVALUATION OF THE OPPORTUNITY OF BANKRUPTCY IN AGRICULTURAL COMPANIES

    Directory of Open Access Journals (Sweden)

    Zhminko N. S.

    2014-03-01

    Full Text Available The concept of research is the development of the existing approaches to the development of rapid methods of financial analysis and the creation of an improved algorithm based on the modeling of a new express courier model for assessing the financial condition and bankruptcy forecasting organizations of the agricultural sector, which allows a high degree of reliability to classify agricultural organizations with the level of financial state and identifies potential opportunities for economic insolvency of businesses

  7. Proposed amendments to the Bankruptcy and Insolvency Act and Companies' Creditors Arrangement Act

    International Nuclear Information System (INIS)

    The proposed amendments to the Bankruptcy and Insolvency Act (BIA) and the Companies' Creditors Arrangement Act (CCAA), which would have a significant impact on creditors' rights and remedies when dealing with a petroleum industry insolvency, were explained. An explanation was presented for the structured procedures that should be followed for: (1) Directors' liability, (2) Protection given to trustees and receivers against pre-appointment corporate obligations, and (3) International insolvencies

  8. Trademark Protection in Bankruptcy Proceedings: A Closer Look at Lubrizol and its Progeny

    Directory of Open Access Journals (Sweden)

    Endia Vereen

    2015-02-01

    Full Text Available When the worlds of bankruptcy and intellectual property licenses converge, licensees are placed in potentially dangerous positions. The seminal case on this issue, Lubrizol Enterprises, Inc. v. Richmond Metal Finishers, Inc., stands for the proposition that when a licensor rejects an intellectual property license as "executory," the licensee no longer has the right to rely on provisions within the agreement with the debtor for continued use of the technology. To countermand the negative effects of Lubrizol, Congress amended the Bankruptcy Code, but intentionally omitted trademarks from the definition of intellectual property. This omission has produced a string of conflicting case law, leaving trademark licensees in a precarious position with few options for recourse. This Note discusses the Intellectual Property Bankruptcy Protection Act and trademark protection specifically, and details the circuit split created by Sunbeam Products, Inc. v. Chicago American Manufacturing. This Note focuses on the implications of the circuit split, and concludes by providing some suggestions for how courts can resolve this issue in the future.

  9. Ethics on the TEPCO bankruptcy, nuclear power plants and regulatory reform in the electric power industry

    International Nuclear Information System (INIS)

    Although regulatory reform in the electric power industry had been considered as part of social system reform like in the finance and communications to liberalize the market, there still continued to exist regional monopoly, integrated system for power generation, transmission and distribution, and lack of competition. The Fukushima accident showed such electric power system was unethical as social system compared to ordinary industries, because electric power company getting profit could not be prepared for nuclear damage liability and would burden third unrelated parties with risk. Electric power company should be forced to insure nuclear power plants for nuclear accidents. Otherwise restart of nuclear power plant operation should not be allowed. Nuclear power had been justified to be entitled grant or subsidy from the government for public good, which would be unfair to people. This article presented speeding-up scheme of Fukushima accident treatment leading to TEPCO bankruptcy and discussed measures against concerns or comments about bankruptcy procedures, major part of which might be mitigation of fund-raising fear by government support. At the proceeding of bankruptcy procedure including spinning off of separate companies, regulatory reform in the electric power industry could be taken in advanced. (T. Tanaka)

  10. Self-adaptive MOEA feature selection for classification of bankruptcy prediction data.

    Science.gov (United States)

    Gaspar-Cunha, A; Recio, G; Costa, L; Estébanez, C

    2014-01-01

    Bankruptcy prediction is a vast area of finance and accounting whose importance lies in the relevance for creditors and investors in evaluating the likelihood of getting into bankrupt. As companies become complex, they develop sophisticated schemes to hide their real situation. In turn, making an estimation of the credit risks associated with counterparts or predicting bankruptcy becomes harder. Evolutionary algorithms have shown to be an excellent tool to deal with complex problems in finances and economics where a large number of irrelevant features are involved. This paper provides a methodology for feature selection in classification of bankruptcy data sets using an evolutionary multiobjective approach that simultaneously minimise the number of features and maximise the classifier quality measure (e.g., accuracy). The proposed methodology makes use of self-adaptation by applying the feature selection algorithm while simultaneously optimising the parameters of the classifier used. The methodology was applied to four different sets of data. The obtained results showed the utility of using the self-adaptation of the classifier. PMID:24707201

  11. For Working-Age Cancer Survivors, Medical Debt And Bankruptcy Create Financial Hardships.

    Science.gov (United States)

    Banegas, Matthew P; Guy, Gery P; de Moor, Janet S; Ekwueme, Donatus U; Virgo, Katherine S; Kent, Erin E; Nutt, Stephanie; Zheng, Zhiyuan; Rechis, Ruth; Yabroff, K Robin

    2016-01-01

    The rising medical costs associated with cancer have led to considerable financial hardship for patients and their families in the United States. Using data from the LIVESTRONG 2012 survey of 4,719 cancer survivors ages 18-64, we examined the proportions of survivors who reported going into debt or filing for bankruptcy as a result of cancer, as well as the amount of debt incurred. Approximately one-third of the survivors had gone into debt, and 3 percent had filed for bankruptcy. Of those who had gone into debt, 55 percent incurred obligations of $10,000 or more. Cancer survivors who were younger, had lower incomes, and had public health insurance were more likely to go into debt or file for bankruptcy, compared to those who were older, had higher incomes, and had private insurance, respectively. Future longitudinal population-based studies are needed to improve understanding of financial hardship among US working-age cancer survivors throughout the cancer care trajectory and, ultimately, to help stakeholders develop evidence-based interventions and policies to reduce the financial hardship of cancer. PMID:26733701

  12. Use of discriminant analysis in estimating the risk of bankruptcy of meat industry enterprises Wykorzystanie analizy dyskryminacyjnej w ocenie ryzyka upadłości przedsiębiorstw przemysłu mięsnego

    Directory of Open Access Journals (Sweden)

    Feliks Wysocki

    2012-12-01

    Full Text Available The article presents the financial situation and risk of bankruptcy enterprises in the meat in-dustry. To assess the risk of bankruptcy meat industry companies discriminatory models analysis was applied. Studies have shown that not all of the selected Polish discriminatory models effectively indicate companies bankruptcy in meat industry. Therefore a model was built to assess the risk of bankruptcy for those companies.

  13. The Rise and Fall of a Ponzi Scheme: The Ideal Illustration of the Law and Ethics of the Federal Bankruptcy Code

    Science.gov (United States)

    Benson, Sandra S.; Chumney, Wade M.

    2011-01-01

    The news is rife with Ponzi schemes--named after Charles Ponzi, who enticed investors with promissory notes paying an above-market return. Ponzi schemes present a unique opportunity to bring to life a federal Bankruptcy Code by illustrating the requirements for commencing a voluntary or involuntary bankruptcy case, the broad avoidance powers of…

  14. Long-term Predictive Ability of Bankruptcy Models in the Czech Republic: Evidence from 2007-2012

    Directory of Open Access Journals (Sweden)

    Ondřej Machek

    2014-06-01

    Full Text Available Bankruptcy models are a common tool of financial analysis to predict the financial distress of companies. However, in the recent years, the instability and risk of the overall economic environment have underlined the need for accurate tools to predict bankruptcy and assess the overall performance of companies. In this article, we analyze the ex-ante predictive ability of selected bankruptcy and solvency models commonly used in financial analysis: Kralicek quick test, Taffler model, the IN99 and IN05 indexes, and Altman Z’-score models in the case of Czech companies from 2007 to 2012. We determined the percentage of cases when these models correctly predicted failures of companies up to five years in advance, and found that the IN05 and IN99 credibility indexes provided the best results, as well as the Altman Z’-score model. However, the predictive ability of the Taffler model and Kralicek quicktest has only been limited.

  15. A declining population and city revenues meant that Detroit’s bankruptcy could not have been avoided

    OpenAIRE

    McDonald, John F.

    2014-01-01

    Last July, the city of Detroit filed for bankruptcy, the largest municipality to do so in U.S. history. But was this action avoidable? With this in mind, John F. McDonald takes an in-depth look at the city’s history. He argues that the seeds of Detroit’s problems can be traced back to the 1950s, and the subsequent slow decline of the automotive industry, the city’s population, employment and revenues, together with rising public liabilities, made bankruptcy all but inevitable.

  16. The threat of bankruptcy may be a new source of competitive advantage in post-recession urban politics

    OpenAIRE

    Davidson, Mark

    2014-01-01

    While Detroit’s bankruptcy has received the most publicity, it was only one of many cities unable to pay their bills in the aftermath of the 2008 financial collapse. Mark Davidson explains how the landscape of urban politics has been redrawn in the wake of the Great Recession. He writes that the role of the state in municipal affairs has greatly expanded and that the threat of bankruptcy, once viewed as an exceptional measure, is now being used as gainful method of reducing public pension obl...

  17. Self-Organized Criticality in a Model of Collective Bank Bankruptcies

    Science.gov (United States)

    Aleksiejuk, Agata; HoŁyst, Janusz A.; Kossinets, Gueorgi

    The question we address here is of whether phenomena of collective bankruptcies are related to self-organized criticality. In order to answer it we propose a simple model of banking networks based on the random directed percolation. We study effects of one bank failure on the nucleation of contagion phase in a financial market. We recognize the power law distribution of contagion sizes in 3d- and 4d-networks as an indicator of SOC behavior. The SOC dynamics was not detected in 2d-lattices. The difference between 2d- and 3d- or 4d-systems is explained due to the percolation theory.

  18. Self-organized criticality in a model of collective bank bankruptcies

    OpenAIRE

    Agata Aleksiejuk; Holyst, Janusz A.; Gueorgi Kossinets

    2001-01-01

    The question we address here is of whether phenomena of collective bankruptcies are related to self-organized criticality. In order to answer it we propose a simple model of banking networks based on the random directed percolation. We study effects of one bank failure on the nucleation of contagion phase in a financial market. We recognize the power law distribution of contagion sizes in 3d- and 4d-networks as an indicator of SOC behavior. The SOC dynamics was not detected in 2d-lattices. Th...

  19. On the Predictability of Risk Box Approach by Genetic Programming Method for Bankruptcy Prediction

    Directory of Open Access Journals (Sweden)

    Alireza Bahiraie

    2009-01-01

    Full Text Available Problem statement: Theoretical based data representation is an important tool for model selection and interpretations in bankruptcy analysis since the numerical representation are much less transparent. Some methodological problems concerning financial ratios such as non-proportionality, non-asymetricity, non-scalicity are solved in this study and we presented a complementary technique for empirical analysis of financial ratios and bankruptcy risk. Approach: This study presented new geometric technique for empirical analysis of bankruptcy risk using financial ratios. Within this framework, we proposed the use of a new ratio representation which named Risk Box measure (RB. We demonstrated the application of this geometric approach for variable representation, data visualization and financial ratios at different stages of corporate bankruptcy prediction models based on financial balance sheet ratios. These stages were the selection of variables (predictors, accuracy of each estimation model and the representation of each model for transformed and common ratios. Results: We provided evidence of extent to which changes in values of this index were associated with changes in each axis values and how this may alter our economic interpretation of changes in the patterns and direction of risk components. Results of Genetic Programming (GP models were compared as different classification models and results showed the classifiers outperform by modified ratios. Conclusion/Recommendations: In this study, a new dimension to risk measurement and data representation with the advent of the Share Risk method (SR was proposed. Genetic programming method is substantially superior to the traditional methods such as MDA or Logistic method. It was strongly suggested the use of SR methodology for ratio analysis, which provided a conceptual and complimentary methodological solution to many problems associated with the use of ratios. Respectively, GP will provide

  20. An Early Warning System for Bankruptcy Prediction: lessons from the Venezuelan Bank Crisis

    CERN Document Server

    Trigo, Loren; Gonzalez, Felix; Llamozas, Jose

    2007-01-01

    During 1993-94 Venezuela experienced a severe banking crisis which ended up with 18 commercial banks intervened by the government. Here we develop an early warning system for detecting credit related bankruptcy through discriminant functions developed on financial and macroeconomic data predating the crisis. A robustness test performed on these functions shows high precision in error estimation. The model calibrated on pre-crisis data could detect abnormal financial tension in the late Banco Capital many months before it was intervened and liquidated.

  1. Banks, Firms, Bad Debts and Bankruptcy in Hungary 1991-4

    OpenAIRE

    Bonin, J. P.; M.E. Schaffer

    1995-01-01

    The paper examines Hungary''s experience with banking and bankruptcy reform in the period 1992-94. The first part of the paper uses enterprise-level data to show that in 1992, the same year in which the amount of classified loans in the state-owned commercial banks grew enormously, the proportion of total bank credit held by highly-unprofitable firms hardly changed. The inference from this is that the rapid growth of bad debt in 1992 was not the result of a "flow problem" (new bad lending) bu...

  2. The Improvement Project in Postponement of Bankruptcy Process: An Evaluation from the Business Point of View

    Directory of Open Access Journals (Sweden)

    Mahmut Ozdevecioglu

    2010-07-01

    Full Text Available It is inevitable for the capital companies and cooperatives in Turkey to go bankrupt in case the assets of the company are insufficient to meet the obligations. However, the law enacted in 2004 has enabled the bankruptcy to be postponed. The company requesting the adjournment of bankruptcy should not only fulfill the legal requirements but also present the court a convincing and serious improvement project. The main objective of this study is to discuss how to prepare such a plan from the point of view of business manager. The improvement project is a financial project based on objective and solid data which contains precautionary measures envisaged to rescue the company. In general the project should incorporate financial and administrative measures. Financial measures include direct and indirect cash inflows from sources like finding new partners, selling personal assets of existing partners and focusing on high profit margin products to ensure that the assets can cover the liabilities. The administrative measures in the field of accounting, finance and human resources contribute to the healing process indirectly. This paper explains the financial and administrative measures in detail.

  3. Diagnostics of enterprise bankruptcy occurrence probability in an anti-crisis management: modern approaches and classification of models

    Directory of Open Access Journals (Sweden)

    I.V. Zhalinska

    2015-09-01

    Full Text Available Diagnostics of enterprise bankruptcy occurrence probability is defined as an important tool ensuring the viability of an organization under conditions of unpredictable dynamic environment. The paper aims to define the basic features of diagnostics of bankruptcy occurrence probability models and their classification. The article grounds the objective increasing of crisis probability in modern enterprises where such increasing leads to the need to improve the efficiency of anti-crisis enterprise activities. The system of anti-crisis management is based on the subsystem of diagnostics of bankruptcy occurrence probability. Such a subsystem is the main one for further measures to prevent and overcome the crisis. The classification of existing models of enterprise bankruptcy occurrence probability has been suggested. The classification is based on methodical and methodological principles of models. The following main groups of models are determined: the models using financial ratios, aggregates and scores, the models of discriminated analysis, the methods of strategic analysis, informal models, artificial intelligence systems and the combination of the models. The classification made it possible to identify the analytical capabilities of each of the groups of models suggested.

  4. A comparison of artificial neural network model and logistics regression in prediction of companies’ bankruptcy (A case study of Tehran stock exchange

    Directory of Open Access Journals (Sweden)

    Ali Mansouri

    2016-05-01

    Full Text Available This paper aims to focus on the comparison of the artificial neural network model and logistic regression model in the prediction of companies’ bankruptcy in Tehran stock exchange (TSE in 3,2 and 1 year in advance. This study exercises an analytic-mathematical approach which has been utilized three-layer artificial neural network tools, which includes one hidden layer and one output neuron and logistic regression (LR with seven independent variable and one dependent variable for testing research’s hypotheses. Although the given results illustrates the high potential capacities of both models in the prediction of bankruptcies in an interval of three years, two years and one year before bankruptcy, capacity of neural network model showed the relative higher capability than LR model. This study takes into consideration the comparison of two popular tools of artificial neural networks (ANNs and LR in bankruptcy prediction that are of importance in their own type.

  5. The legal fate of biobanks between privacy, IPRs and crisis of a firm. A preliminary study on the case of "bio-bankruptcy" .

    Science.gov (United States)

    Ducato, Rossana; Perra, Silvia; Zuddas, Carla

    2014-01-01

    In the case of biobank bankruptcy, the current legal framework is not suitable to protect the rights of research subjects. In the paper we identify such a gap in protection and suggest some remedies to address it. PMID:25845207

  6. Evaluating and comparing the ability to predict the bankruptcy prediction models of Zavgren and Springate in companies accepted in Tehran Stock Exchange

    Directory of Open Access Journals (Sweden)

    Ghodratollah Talebnia

    2016-07-01

    Full Text Available Recent bankruptcy of large companies at international level and volatilities of securities in Iran have highlighted the necessity of evaluating the financial power of companies. One of the evaluating tools is using bankruptcy prediction models. Bankruptcy prediction models are one of the tools for estimating the future condition of companies. The aim of this research is to present theoretical foundations and compare the results of investigating two models of Zavgren (1985 and Springate (1978 in Iran’s exchange market through main and adjusted coefficients according to statistical techniques of Logit and Multiple Discriminant Analysis (MDA. The data was gathered and tested from 2009 to 2013. The results indicated that the adjusted Springate Model was more efficient than other models in the bankruptcy year.

  7. Changing NPP consumption patterns in the Holocene: from Megafauna "liberated" NPP to "ecological bankruptcy"

    Science.gov (United States)

    Doughty, C.

    2015-12-01

    There have been vast changes in how net primary production (NPP) is consumed by humans and animals during the Holocene beginning with a potential increase in availability following the Pleistocene megafauna extinctions. This was followed by the development of agriculture which began to gradually restrict availability of NPP for wild animals. Finally, humans entered the industrial era using non-plant based energies to power societies. Here I ask the following questions about these three energy transitions: 1. How much NPP energy may have become available following the megafauna extinctions? 2. When did humans, through agriculture and domestic animals, consume more NPP than wild mammals in each country? 3. When did humans and wild mammals use more energy than was available in total NPP in each country? To answer this last question I calculate NPP consumed by wild animals, crops, livestock, and energy use (all converted to units of MJ) and compare this with the total potential NPP (also in MJ) for each country. We develop the term "ecological bankruptcy" to refer to the level of consumption where not all energy needs can be met by the country's NPP. Currently, 82 countries and a net population of 5.4 billion are in the state of ecologically bankruptcy, crossing this threshold at various times over the past 40 years. By contrast, only 52 countries with a net population of 1.2 billion remain ecologically solvent. Overall, the Holocene has seen remarkable changes in consumption patterns of NPP, passing through three distinct phases. Humans began in a world where there was 1.6-4.1% unclaimed NPP to consume. From 1700-1850, humans began to consume more than wild animals (globally averaged). At present, >82% of people live in countries where not even all available plant matter could satisfy our energy demands.

  8. RESEARCH REGARDING THE USE OF DISCRIMINANT ANALYSIS FOR ASSESSING THE BANKRUPTCY RISK OF AGRICULTURAL COMPANIES

    Directory of Open Access Journals (Sweden)

    Agatha POPESCU

    2014-12-01

    Full Text Available The paper aimed to apply the discriminant analysis using Altman Z' Score model in order to predict bankruptcy risk of the agricultural companies, using a study case regarding three representative companies dealing with dairy farming in Ilfov County of Romania. The results discriminated the companies according to their financial statement and ratios and mainly Z Score values. The company F1 proved the most difficult financial statement being classified in the Distress zone every year ( Z'=1.003 in the year 2011, 1.098 in the year 2012 and 0.971 in the year 2013. For this reason, this company is bankrupt. The company F2 was situated in the "Grey zone" every year, because the financial situation is not so good, but it i able to pay a part of its debts. However, it is in danger to fail in the future, if measures to recover are not taken in time. (Z'=1.436 in the year 2011, 1.269 in the year 2012 and 1.343 in the year 2013. The company F3 registered a different situation from a year to another. In the first two years, 2011 and 2012, it was facing a difficult financial statement being placed in the "Distress zone". In the year 2013, the financial statement has recovered due to the measures taken by managers and it passed in the "Safe zone", characterized by a good financial situation and solvency, enabling it to pay all its debts.(Z'=1.126 in the year 2011, 0.928 in the year 2012 and 3.189 in the year 2013. The agricultural companies dealing with dairy farming have a low profitability, and the degree of bankruptcy risk is high. For this reason, managers have to keep under control the financial indicators any moment and take urgent measures to recover by the end of the year as their company not to fail.

  9. Detroit’s post-bankruptcy redevelopment has been marred by a fragmented approach focused on short-term gains.

    OpenAIRE

    Williams, Gareth

    2015-01-01

    In 2013, after years of failed policies aimed at redeveloping the Motor City, Detroit declared bankruptcy. Gareth Williams takes an in-depth look at these policies, which included the allocation of millions in municipal funding which has done little for job creation and retention, and instead has funnelled money to corporate boardrooms. He writes that the city’s redevelopment efforts have prioritised unsustainable, short-term advantages at great and increasingly apparent public cost.

  10. BANKRUPTCY RISK – CENTRAL POINT IN THE FINANCIAL – ACCOUNTING DIAGNOSIS

    Directory of Open Access Journals (Sweden)

    Gheorghe HOLT

    2009-12-01

    Full Text Available In an competitional economy, the existence and the viability of an affair are tied up by risk in the measure in how the present and the futures results are unther the influence of unespected events. This explain and justify the interes of the financial analists in elaborating an valuation and estimate diagnosis of this inerent phenomen. The most important utilization of the bankruptcy point analysis refers to the business operating and financial risks evaluation. For this reason it is necessarly to approach the problems involving the estimation mode of the risks degree in order to discover the facts that generate them. The operating risk is evaluated through the degree operating leverage, calculated as the sensitivity of operating profit to the sales variability. It is demonstrated that the level of this risk is determined by the expenses structure in fixed costs and variable costs. It is greater when the fixed costs weight is more important. Secondly, the financial risk is evaluated through the financial coefficient leverage, calculated as the sensitivity of net profit to the operating profit variability. The level of risk is determined by the financial expenses. It is greater when the business is financed by debts and smaller when the equity is more important.

  11. CORPORATE FINANCIAL DISTRESS AND BANKRUPTCY: A COMPARATIVE ANALYSIS IN FRANCE, ITALY AND SPAIN

    Directory of Open Access Journals (Sweden)

    Alessandra Amendola

    2013-11-01

    Full Text Available The paper presents a competing-risks approach for investigating the determinants of corporate financial distress. In particular a comparative analysis of three European markets-France, Italy and Spain–is performed in order to find out the similarities and the differences in the determinants of distress.By using the AMADEUS dataset, two possible causes of exit from the market are considered:bankruptcy and liquidation. For identifying the variables that influence the risk of leaving the market,a competing-risks model for each country is estimated and is compared with a pooled model including all the three countries. In addition, the performance of the competing-risks approach is evaluated versus the single-risk model, in which all states are considered without any distinctions.The reached results show that the competing risks approach leads to a saving in the number of selected variables that becomes more significant when the model is estimated for each country separately. Moreover, the selected variables for each country enable to identify similarities between the different exit routes across the markets. Some of the differences between Spain and the other two countries may be related to the dissimilar definition of the distress states.

  12. The Prediction of Bankruptcy Using Backpropagation Algorithm for “IO” Model Analysis

    Directory of Open Access Journals (Sweden)

    Ciprian Dragota

    2007-01-01

    Full Text Available The basic question which every bank it putswhen a client or a future client whishes to take a bank loanis: “The future debtor it’s capable to refund the loan atmaturity? (Installments plus the interest“. To answer atthis question the bank makes an assessment in which assetsand liabilities are analyze. There is also assessed the creditrating, the cash flow, the securities and, very important,bankrupt risk analysis.For the last one, to calculate bankrupt risk analysis,banks use some models (knows as “Z” score. Few of themare financials methods (like Altman, Canon & Holder,Yves Colonques etc. Nevertheless, these models are beendevelop for a specific situation and for a western economywhich is functional and very articulated. For our economy,we propose a new model that is been build with the specificeconomic dates and inputs, the model we called “IO”model.Without pretending to be able to penetrate over thecomplexity of the phenomenon, this study is trying to do apractical and experimental analysis of bankruptcy usingback propagation algorithm applied to the ”IO” model.

  13. FALÊNCIA E RECUPERAÇÃO DE EMPRESAS: CONTRIBUIÇÃO PARA A MATERIALIZAÇÃO DA FUNÇÃO SOCIAL / BANKRUPTCY AND BUSINESS RECOVERY: CONTRIBUTION TO THE SOCIAL FUNCTION MATERIALIZATION

    Directory of Open Access Journals (Sweden)

    Jonabio Barbosa Santos

    2015-08-01

    Full Text Available This study aimed to examine the Law of Bankruptcy and Enterprise Preservation connected to the principle of the social function of the company seeking to determine the effectiveness of its work in protecting the social function of the enterprise. From the theoretical analysis on the evolution of the topic, the social importance of the company and the negative results of its extinction, a comparative study between the aforementioned statute, Bankruptcy Act and the Concordat was held regarding the preservation of function business. With the analysis of data related to the amount of requirement of bankruptcy and recovery from 1991 to 2014, and the use of simple regression, this study demonstrates the influence of the new legislation to reduce the requirements of bankruptcy and bankruptcy protection. Leading us to consider the claim of social function company protection, sought by the legislature, is being achieved

  14. The consequences of the proposed amendment of the Dutch Bankruptcy Code for the supply and transport of natural gas and electricity in a liberalized market

    International Nuclear Information System (INIS)

    Pursuant to the legislative proposal to amend the Bankruptcy Act, suppliers of energy can no longer terminate or suspend agreements for the supply of energy in case of bankruptcy of such customer. In addition, default under such an agreement relating to the period prior to bankruptcy is no ground to dissolve such an agreement. Furthermore, (a request for) bankruptcy or seizure of assets may no longer lead to termination by operation of law, unless approved by the receiver. The above applies as well to moratorium of payment. This legislative proposal will probably enter into force at some point during this year. The background of the legislative proposal is that suppliers of energy are 'essential suppliers' who should not be able to abuse their monopolistic position to suspend delivery of energy in order to force payment of unpaid bills relating to the period prior to bankruptcy. There is no justification for such a restriction to only apply to energy companies instead of to all 'essential suppliers'. If the regime were to apply to energy companies, it should only apply to network managers: these parties are the only energy-related parties who remain essential suppliers. In principle, the gas and electricity itself can also be obtained from other parties than the current supplier, although certain problems may arise in relation to switching supplier. In addition, the legislative proposal will probably lead to a situation where energy companies will require security or terminate the agreement in an earlier stage, as soon as they realise that there are problems with the payment of invoices for the supply/transport of electricity. The costs in relation thereto and in relation to the obligation to continue the supply during bankruptcy, may lead to higher costs of energy distribution companies which will probably be included in the terms for the supply of electricity

  15. ASPECTS CONCERNING THE DETERMINATION OF BANKRUPTCY RISK BY SOLVENCY AND LIQUIDITY RATIOS IN THE COMPANIES LISTED ON THE BUCHAREST STOCK EXCHANGE

    Directory of Open Access Journals (Sweden)

    Teodor Hada

    2014-07-01

    Full Text Available This paper presents issues related to determining the bankruptcy risk for 64 companies listed on the Bucharest Stock Exchange.The purpose of this paper is to determine the percentage of companies falling within the normal range. In the introduction, we set the goal, the research methodology, and the novelty value of this work. Hereinafter, we presented different views of risk concepts, bankruptcy, solvency and liquidity. After that, based on theoretical presentations, a case study was conducted to determine the solvency and liquidity ratios. In the end, on the basis of the above considerations, the conclusions were established and some proposals were listed.

  16. The Lehman Brothers Bankruptcy E: The Effect on Lehman’s U.S. Broker-Dealer

    OpenAIRE

    Rosalind Z. Wiggins; Andrew Metrick

    2014-01-01

    Lehman’s U.S. broker-dealer, Lehman Brothers Inc. (LBI), was excluded from the parent company’s bankruptcy filing on September 15, 2008, because it was thought that the solvent subsidiary might be able to wind down its affairs in a normal fashion. However, the force of the parent’s demise proved too strong, and within days, LBI and dozens of Lehman subsidiaries around the world were also in liquidation. As a regulated broker-dealer, LBI was required to comply with the Securities and Exchange ...

  17. Fixing the “Undue Hardship” Hardship: Solutions for the Problem of Discharging Educational Loans Through Bankruptcy

    OpenAIRE

    Adam J. Williams

    2008-01-01

    Imagine John Smith, soon to be John Smith, Esquire. He has completed his last round of finals and is anxiously awaiting graduation from law school. In the time between finals and graduation, when many third-year law students are taking a brief mental vacation before bar exam preparation gets into full swing, John thinks he has found the ultimate loophole. John files a bankruptcy petition, which shows his non-existent current income, minimal assets, and education loans totaling over $100,000. ...

  18. Results of research on development of an intellectual information system of bankruptcy risk assessment of the enterprise

    Science.gov (United States)

    Telipenko, E.; Chernysheva, T.; Zakharova, A.; Dumchev, A.

    2015-10-01

    The article represents research results about the knowledge base development for the intellectual information system for the bankruptcy risk assessment of the enterprise. It is described the process analysis of the knowledge base development; the main process stages, some problems and their solutions are given. The article introduces the connectionist model for the bankruptcy risk assessment based on the analysis of industrial enterprise financial accounting. The basis for this connectionist model is a three-layer perceptron with the back propagation of error algorithm. The knowledge base for the intellectual information system consists of processed information and the processing operation method represented as the connectionist model. The article represents the structure of the intellectual information system, the knowledge base, and the information processing algorithm for neural network training. The paper shows mean values of 10 indexes for industrial enterprises; with the help of them it is possible to carry out a financial analysis of industrial enterprises and identify correctly the current situation for well-timed managerial decisions. Results are given about neural network testing on the data of both bankrupt and financially strong enterprises, which were not included into training and test sets.

  19. Optimal consumption, investment and bankruptcy protection%最优消费投资与破产保护

    Institute of Scientific and Technical Information of China (English)

    杨金强; 杨招军

    2013-01-01

    This paper considers an optimal investment problem for a risk-averse entrepreneur facing business risk to maximize the expectation of total consumption utility through consumption smoothing, real investment, bankruptcy protection and financial investment when the debt and enterprise income tax are given. We derive semi-closed-form solution for capital value, optimal business strategy and bankruptcy threshold in a non-risk-neutral world. In addition, we obtain the expected return, beta coefficient, system risk premium and idiosyncratic risk premium corresponding CAPM. Unlike the classical theory, the idiosyncratic risk premium is strictly positive once the entrepreneur is risk-averse. The conclusions and numeric results show that the risk attitude of the entrepreneur has a significant effect on the value of the capital, optimal capital structure, real investment strategy, bankruptcy threshold, idiosyncratic risk premium and expected return.%考虑一个面临经营性风险(非系统风险)的企业家,在给定的债务及企业所得税率下,如何通过消费平滑、实业投资、破产保护以及金融投资,实现消费效用最大化的公司金融问题.得到了非风险中性下企业资本价值的半闭式解及相应的最优经营策略和最优破产阈值.对应经典的资本资产定价(CAPM)理论,得出企业家的期望收益率、贝塔系数、系统风险溢价和非系统风险溢价(idiosyncratic risk premium).不同于传统观点,非系统风险溢价严格大于零.这些结论和数值计算表明,企业家的风险态度对企业资本价值、最优资本结构、实业投资策略、破产水平、非系统风险溢价、期望收益率等具有显著的影响.

  20. Oil and gas farmout agreements in bankruptcy. Hearing before the Subcommittee on Economic and Commercial Law of the Committee on the Judiciary, House of Representatives, One Hundred Second Congress, Second Session on H.R. 4363, April 1, 1992

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    1992-12-31

    The Economic and Commercial Law subcommittee hearing addressed the Oil and Gas Farmout Agreements in Bankruptcy. The hearing addressed H.R. 4363 and statements of witnesses and documents prepared for record are included along with the proposed legislative text.

  1. Selected Ratio and Bankruptcy Early-Warning Method Analysis of Competitiveness of Wood Sector Companies Listed on Warsaw Stock Exchange

    Directory of Open Access Journals (Sweden)

    Justyna Biernacka

    2012-09-01

    Full Text Available This paper presents the analysis of economic conditions of wood sector companies listed on the Warsaw Stock Exchange. Among many measures of ratio analysis, the three most frequently used groups of indicators - profitability, debt and liquidity were selected. For a comprehensive presentation of the situation of each company, the Mączyńska & Zawadzki’s model was used as the bankruptcy early warning method. Two furniture industry companies, two wood-based panel industry companies, two pulp and paper industry entities, a representative of sawmilling industry and a company of wood-based panels and furniture industry were analyzed. The analysis showed that companies with stabile position in the market have the best economic conditions, and these were namely the pulp and paper industry and furniture industry.

  2. Detroit’s bankruptcy has had little cross-border impact, but Windsor, Ontario shares Detroit’s broader economic challenges

    OpenAIRE

    Anderson, Bill

    2013-01-01

    In July the city of Detroit filed for bankruptcy, the largest American city ever to do so. Just across the Detroit River lies the Canadian city of Windsor, Ontario, which has historically shared a similar reliance on automotive manufacturing, and yet has not suffered as sharp an economic downturn. Bill Anderson looks at the close links between the two cities, writing that while Windsor may have performed better economically, like Detroit, it can no longer rely on the automotive in...

  3. Contagion effect due to Lehman Brothers’ bankruptcy and the global financial crisis - From the perspective of the Credit Default Swaps’ G14 dealers

    OpenAIRE

    Irfan Akbar Kazi; Suzanne Salloy

    2013-01-01

    This article investigates the dynamics of conditional correlation among the G14 banks’ dealer for the credit default swap market from January 2004 until May 2009. By using the asymmetric dynamic conditional correlation model developed by Cappiello, Engle and Sheppard (2006), we examine if there is contagion during the global financial crisis, following Lehman Brothers’ bankruptcy of September 15th, 2008. The main contribution of this article is to analyze if the interdependence structure betw...

  4. Dynamics in the correlations of the Credit Default Swaps’ G14 dealers: Are there any contagion effects due to Lehman Brothers’ bankruptcy and the global financial crisis?

    OpenAIRE

    Irfan Akbar Kazi; Suzanne Salloy

    2014-01-01

    This article investigates the dynamics of conditional correlation among the G14 banks’ dealer for the credit default swap market from January 2004 until May 2009. By using the asymmetric dynamic conditional correlation model developed by Cappiello, Engle and Sheppard (2006), we examine if there is contagion during the global financial crisis, following Lehman Brothers’ bankruptcy of September 15th, 2008. The main contribution of this article is to analyze if the interdependence structure betw...

  5. Fixing the “Undue Hardship” Hardship: Solutions for the Problem of Discharging Educational Loans Through Bankruptcy

    Directory of Open Access Journals (Sweden)

    Adam J. Williams

    2008-04-01

    Full Text Available Imagine John Smith, soon to be John Smith, Esquire. He has completed his last round of finals and is anxiously awaiting graduation from law school. In the time between finals and graduation, when many third-year law students are taking a brief mental vacation before bar exam preparation gets into full swing, John thinks he has found the ultimate loophole. John files a bankruptcy petition, which shows his non-existent current income, minimal assets, and education loans totaling over $100,000. Given John’s apparent insolvency, the court discharges his student loans so that John can have a fresh start and attempt to get back on his feet. John is pleased because he has a great job lined up for after graduation, and getting rid of this debt will make his life better. Luckily for the taxpayers who would then be responsible for John’s federally guaranteed student loans, Congress essentially eliminated such a possibility decades ago, and college students across the country can rest easy knowing that their loans will be fully intact upon graduation.

  6. Analysis of auditor`s reports and bankruptcy risk in banking sector in the Republic of Serbia

    Directory of Open Access Journals (Sweden)

    Milovan Stanisic

    2013-06-01

    Full Text Available This paper aims to point out the significance of external audit and auditor’s reports. The stability of banks and its operations are vital not only for efficient financial system functioning, but also for overall industry. The banking sector, both in developed and undeveloped countries, experienced financial crisis in the last few years. Considering these circumstances and the fact that demands of financial statements users grow in complexity, their control is essential. We provide the empirical evidence on the banking sector auditor’s reports in the Republic of Serbia, with particular reference to auditor’s opinions and audit agencies that had conducted banks audits. The review of the audit legislation and professional standards will be presented, as well as the notion of bankruptcy risk and its relevance for baking sector. Our research results indicate that special attention should be paid to banks which auditor’s report had some explanatory paragraphs or even qualification. In conclusion we highlight the red flags that may damage banks operations and emphasize the importance of keeping the high level of auditor’s independence with the intention to provide confidence to stakeholders who form their decisions based on their reports.

  7. The impact of investments and changes in the production regime on the results of creditworthiness assessment and bankruptcy prediction models: Case study: Company Bulgari Filati d.o.o.

    Directory of Open Access Journals (Sweden)

    Muminović Saša

    2012-06-01

    Full Text Available Although they can be a subject of criticism and have been challenged from its beginnings, bankruptcy prediction models have often been used in practice for more than four decades. The following models for predicting bankruptcy are applied in this issue: Altman's Z'-Score, Zmijewski model, Taffler's model and Sandin and Porporato model. Out of the creditworthiness assessment models (solvency analysis, the following models have been applied: Z''-Score (Altman, Hartzell and Peck and the BEX model. A significant shortcoming of the observed models is their failure to take investment into account. Beside, some models have inadequately assessed the transition of operations to lohn production, while others have not.

  8. Deposit Insurance Pricing Method Considering Bankruptcy Externalities%考虑银行破产外部效应的存款保险定价模型

    Institute of Scientific and Technical Information of China (English)

    吕筱宁; 秦学志

    2014-01-01

    运用存款保险的期望损失定价方法和Shapley值法,建立了考虑银行违约/破产外部效应的存款保险定价模型。模型中度量的破产成本不仅考虑了银行破产清算过程中其自身资产价值的损失,还考虑了银行违约/破产的负外部效应---可能增加其他银行的破产损失,据此确定的存款保险保费反映了各银行对系统总破产成本的边际贡献。为验证模型效果,构造了三种情景进行模拟分析,结果表明:存款保险保费与银行系统对破产银行资产的收购能力负相关,且负相关程度随经济形势的恶化而加剧;保费与整个银行系统参保银行数目之间也呈负相关关系。%It is generally considered that the overall costs of bank failures are higher than those in other indus-tries.This is due to the existence of negative externalities of bank failures , which may lead to additional loss of the default banks ’ assets .This paper establishes a pricing model of deposit insurance with consideration of bank -ruptcy externalities .It is taken into account that each default bank ’ s bankruptcy cost involves not only its assets loss caused by liquidation but also the externalities that may increase other banks ’ bankruptcy cost .Expected loss pricing method is used to calculate the net premium of deposit insurance while the additional premium is de -termined utilizing Shapley value .The total premium accordingly reflects each bank ’ s marginal contribution to the total bankruptcy cost of the whole banking system .Three scenarios are constructed to test the model .The results show that it is negatively correlated between the premium and the banking system ’ s acquisition ability of the bankruptcy assets , and this correlation becomes more significant when the economic situation deteriorates .Mean-while, the number of insured banks in the banking system impacts the premium negatively .

  9. Ohlson´s Model and its Prediction Ability in Comparison with Selected Bankruptcy Models in Conditions of Czech SMEs

    Directory of Open Access Journals (Sweden)

    Dana Kubíčková

    2015-12-01

    Full Text Available In this paper are presented the results of a study examining the ability of Ohlson’s Logit model assessing and predicting the financial condition development of SMEs in comparison with the other models outcomes. Ohlson´s model was created using logit regression, which allows in the evaluation of the financial situation involve qualitative and discrete variables. The aim of the study is to determine whether the method used to derive the model influences the final assessment of the financial condition and indication of bankruptcy. The solution is based on the comparison of the resulting assessment of these four models, value of which were calculated on the same sample of Czech firms. As compared models were selected Z-score model, derived in the terms of US enterprises, IN05 model, which was derived in the conditions of Czech companies and Taffer´s model, derived in the conditions of UK firms. The sample consisted of 1996 small and medium firms in the manufacturing industry in Czech Republic. Data were obtained from the database of Albertina for the period of the years 2012 and 2013. It was found that the assessment of the firm´s financial situation matches in case of the results of Ohlson´s model and Taffler´s model, greater differences were found between the resulting values of Ohlson´s and Taffler´s model on one side and IN05 and Altman's model on the other side. Ohlson´s model and the Taffler´s model confirmed a good financial situation of companies in about 90 per cent of firms, Altman´s model and IN05 model in about 40 per cent of firms. The influence of the method used to derive the model on the assessment of the financial condition of companies was not proven.

  10. Internal Model of Commercial Bank as an Instrument for Measuring Credit Risk of the Borrower in Relation to Financial Performance (Credit Scoring and Bankruptcy Models

    Directory of Open Access Journals (Sweden)

    Belás Jaroslav

    2011-12-01

    Full Text Available Commercial banks generally use different methods and procedures for managing credit risk. The internal rating method in which the client has an important position in the process of granting credit provides a comprehensive assessment of client creditworthiness. The aim of this article is to analyze selected theoretical, methodological and practical aspects of internal rating models of commercial banks within the context of models that measures financial performance and to make a comparison of results of real - rating models which are used in the Czech Republic and Slovakia. The results of the chosen credit scoring and bankruptcy methods on selected companies from segments of small and medium-sized companies are presented.

  11. Bankruptcy Proceedings and the Violation of Shareholders’ Rights in the Context of Special Legal Protection Conferred by Copyright Law in Romania

    Directory of Open Access Journals (Sweden)

    Anca Popescu-Cruceru

    2012-02-01

    Full Text Available Insolvency law creates a privileged position of the creditor, which is provided with a lever to manipulate the property while the debtor can deprive shareholders of the wording of any application or appeal, and thus violating the management of property rights, arising from the right ownership’ on the social shares. The lack of Romanian legislation gives no possibility of the shareholder to protect his property rights in case the company loses its legal personality while it still has assets with a non-concluded legal regime until the bankruptcy procedure is closed. Therefore, as the same problem appears in case a company which acts as a shareholder in another legal entity lose its legal personality, it has to give effectiveness to the related civil norms of inheritance, other than the remaining assets will remain without owner.

  12. Inadequate Pricing,Bankruptcy Risk and Insurance Regulation%不充分定价、破产风险与保险监管

    Institute of Scientific and Technical Information of China (English)

    张宗军; 吴耀峰

    2015-01-01

    In the developed insurance markets, bankruptcy of insurance company is a common-sense question. While there were still not insurance companies to bankrupt in china. Through the analysis of foreign literature and data, we discover the main cause of insurance company bankruptcy had a high degree of similarity in different markets,and inadequate pricing is the biggest incentive. On this basis, we analyze the formation process of inadequate pricing. The results show that there are the significant differences between property insurance companies and life insurance compa-nies. That could provide some inspiration to the company’s management and market regulation.%在发达的保险市场,破产是保险公司退出市场的一种常见路径,但国内至今还没有一家保险公司因破产而退出市场。本文通过对国外数据和文献的分析表明,不同市场上保险公司破产的主要诱因具有高度的相似性,且定价不充分是最大的诱因。在此基础上,本文进一步比较分析了产、寿险公司定价不充分形成过程所存在的重大差异。由此,为国内保险公司的经营管理和监管部门的政策制定提供一定的启示。

  13. Academic Bankruptcy by Design.

    Science.gov (United States)

    Browne, Arthur D.

    1986-01-01

    The advantages and requirements for offering a second chance to students who have failed, by forgiving a poor academic record, are discussed and supported by findings from a survey of institutions and the results of several experimental programs. (MSE)

  14. Analysis of the Evolution for the Main Economic and Financial Indicators and the Risk of Bankruptcy for a Company who is the most Modern Maritime - River Port on the Danube, in the Period 2009-2013

    Directory of Open Access Journals (Sweden)

    Rodica Pripoaie

    2015-08-01

    Full Text Available This work presents the evolution for the main economic and financial indicators and the risk of bankruptcy for a company who is the most modern maritime - river port on the Danube, in the period 2009-2013. The evolution of the main economic and financial indicators in the last years 2009- 2013 is very dramatic, because Net profit margin (% decreased from 65.76% in 2009 at 9.93% in 2013 and after tax ROE (Return on Equity decreased from 6.69% in 2009 at 2.93% in 2013, so less than half. Bankruptcy risk has always been very important both for investors, for company managers, and for banking institutions and if this intensifies then it becomes a warning for them. Regression models can be used to explain relationships among economic and financial indicators.

  15. 破产重整中出资人权益调整之思考%Consideration of Equity Adjustments of Investors in Bankruptcy Reorganization

    Institute of Scientific and Technical Information of China (English)

    宋琪

    2012-01-01

    破产重整中,出资人的股东权利和正常运营状态下有所不同,应适当保护中小股东的股权,尊重出资人和债权人的意思自治。赋予出资人在重整程序中享有重整申请权,重整计划草案表决权,重整相关事宜知情权和重整监督权。%In bankruptcy reorganization,the rights of shareholders of investors are different from those in normal operating condition,so the equity of minority shareholders should be protected appropriately,and autonomy should be respected according to investors and creditors.The investors should be given the application rights to restructure,the vote rights for restructuring draft plan,the right to know related matters of restructuring,and the right of supervision for restructuring.

  16. On the Shareholders Protection Mechanisms in the Non-bankruptcy Liquidation%非破产清算中股东权利保护的不足与完善

    Institute of Scientific and Technical Information of China (English)

    夏思宇

    2014-01-01

    随着公司制度的日益完善,传统的公司非破产清算中注重对债权人利益保护,兼顾对股东权益进行保护的理念受到挑战。这种“重债权人,轻股东”的观念,既不利于各方利益的平衡制约,也不利于市场经济的蓬勃发展。因此,如何完善公司非破产清算制度,适当弱化对债权人利益的关注,强化对股东,尤其是中小股东权益的关怀,是我们目前更应当去研究的问题。本文通过对我国现行非破产清算法律制度所存在的问题的分析,从解释论层面对股东权利进行了完善和明确,并从立法论层面试图赋予股东在清算阶段的某些权利,以期能更好地保护股东的权利,实现非破产清算过程中各方利益主体的平衡保护。%As the company system has improved steadily, the traditional non-bankruptcy liquidation focuses on the protection of the interests of the creditors, taking into account the concept of protection of shareholders' equity to be challenged. The concept of "creditors, light shareholders" is detrimental to the constraints of the balance of interests, is not conducive to the rapid development of the market economy. Therefore, as to how to improve the company non-bankruptcy liquidation system, the appropriate weakening of concern for the interests of creditors, and how to strengthen the shareholders, especially the care of the interests of minority shareholders, we should study the problem. In this paper, the analysis of the problems in our current legal system of non-bankruptcy liquidation, the shareholders' rights were perfected and clearly explained on the theory level, and attempt to confer certain rights of shareholders in the liquidation phase of the Legislation of level, to better to protect the rights of shareholders, to achieve non-bankruptcy the main balance protection of the interests of all parties in the process of liquidation.

  17. Essays on internal capital markets, bankruptcy and bankruptcy reform..

    OpenAIRE

    Dewaelheyns, Nico

    2006-01-01

    One of the most important recent developments in the corporate finance l iterature is the growing realization that insights from the classic US b ased finance theories are not always equally valid in other parts of the world. An extensive literature has been developed on the links between issues such as corporate governance, ownership structure or legal framew ork and all types of corporate finance decisions (leverage, dividend pol icy, firm growth, investment policy, etc., etc.). This disser...

  18. 关于银行业金融机构破产的相关问题研究%A research of Related Issues of Banking Financial Institution Bankruptcy

    Institute of Scientific and Technical Information of China (English)

    岳大巍

    2011-01-01

    In 2008 the global financial crisis triggered by the U.S. subprime mortgage crisis brought the world economy into the abyss. And the Bank bankruptcy issues become a hot topic in financial circles at home and abroad. With the continuous development of financial innovation, deepening of the banking sector openness and of China's economic restructuring, the bank will face a more complex environment and more severe challenges. Risk and crisis may come at any time, therefore, the importance of bank failures become more prominent. This paper intends to do some research of the relevant issues of bank bankruptcy.%2008年美国次贷危机引发的全球金融危机将世界经济带入了谷底,银行破产问题成为国内外金融界热议的话题,备受瞩目。随着金融创新的不断发展,银行业开放程度的加深以及我国经济转型的深入,银行将面对更加复杂的环境,面临更加严峻的挑战,风险和危机需要重点关注,因此,银行破产问题的重要性愈发凸显。本文拟就银行破产有关问题做简单探讨。

  19. Insurance bankruptcy creates political storm

    Index Scriptorium Estoniae

    2005-01-01

    Hoolimata peaminister Algirdas Brazauskase nõudmisest, keeldus Leedu kindlustusinspektsiooni juht Edvinas Vasilis-Vasiliauskas oma kohalt tagasi astumast, kuna soovib viia lõpule kindlustusseltsi Ingo Baltic pankrotiprotsessi

  20. Assessing the Probability of Bankruptcy

    OpenAIRE

    Heaps, Jarom

    2015-01-01

    Knowing whether or not a company is financial stable has always been a top concern for analysts and money managers. This paper compares the effectiveness of default prediction using two different types of measures: accounting and market based. Accounting measures have been the most popular even though, according to theory, a market based measure reflects all available information. Theory goes as far to say that accounting measures can add no incremental value to a market based measure. In my ...

  1. GT Advanced Technologies Inc. Bankruptcy

    OpenAIRE

    Souply-Pierard, Fernand

    2014-01-01

    GT Advanced Technologies (GTAT), une société américaine de haute technologie produisant du saphir synthétique (fournisseur d’Apple), a fait faillite ce lundi 6 octobre 2014 et s’est placée sous la protection du chapitre 11 de la loi américaine sur la faillite. Cette faillite était-elle prévisible ?

  2. The Bankruptcy of Compensatory Education

    Science.gov (United States)

    Gordon, Sol

    1970-01-01

    Argues that compensatory education has failed because it concentrates on the student's failure to learn rather than the school's failure to instruct and provide experiences that make him ready to learn. (JM)

  3. Power Law in Firms Bankruptcy

    CERN Document Server

    Hong, B H; Lee, J W; Hong, Byoung Hee; Lee, Kyoung Eun; Lee, Jae Woo

    2007-01-01

    We consider the scaling behaviors for fluctuations of the number of Korean firms bankrupted in the period from August 1 2002 to October 28 2003. We observe a power law for the distribution of the number of the bankrupted firms. The Pareto exponent is close to unity. We also consider the daily increments of the number of firms bankrupted. The probability distribution of the daily increments for the firms bankrupted follows the Gaussian distribution in central part and has a fat tail. The tail parts of the probability distribution of the daily increments for the firms bankrupted follow a power law.

  4. Power law in firms bankruptcy

    Science.gov (United States)

    Hong, Byoung Hee; Lee, Kyoung Eun; Lee, Jae Woo

    2007-01-01

    We consider the scaling behaviors for fluctuations of the number of Korean firms bankrupted in the period from 1 August 2002 to 28 October 2003. We observe a power law for the distribution of the number of the bankrupted firms. The Pareto exponent is close to unity. We also consider the daily increments of the number of firms bankrupted. The probability distribution of the daily increments for the firms bankrupted follows the Gaussian distribution in central part and has a fat tail. The tail parts of the probability distribution of the daily increments for the firms bankrupted follow a power law.

  5. The consequences of the proposed amendment of the Dutch Bankruptcy Code for the supply and transport of natural gas and electricity in a liberalized market; De gevolgen van de voorgenomen wijziging van de Faillisementswet voor de levering en transport van gas en elektriciteit in een geliberaliseerde markt

    Energy Technology Data Exchange (ETDEWEB)

    Keijsers, P.; Hartendorp, R.C. [Sectie Energy and Utilities, Clifford Chance LLP, Amsterdam (Netherlands)

    2003-06-01

    Pursuant to the legislative proposal to amend the Bankruptcy Act, suppliers of energy can no longer terminate or suspend agreements for the supply of energy in case of bankruptcy of such customer. In addition, default under such an agreement relating to the period prior to bankruptcy is no ground to dissolve such an agreement. Furthermore, (a request for) bankruptcy or seizure of assets may no longer lead to termination by operation of law, unless approved by the receiver. The above applies as well to moratorium of payment. This legislative proposal will probably enter into force at some point during this year. The background of the legislative proposal is that suppliers of energy are 'essential suppliers' who should not be able to abuse their monopolistic position to suspend delivery of energy in order to force payment of unpaid bills relating to the period prior to bankruptcy. There is no justification for such a restriction to only apply to energy companies instead of to all 'essential suppliers'. If the regime were to apply to energy companies, it should only apply to network managers: these parties are the only energy-related parties who remain essential suppliers. In principle, the gas and electricity itself can also be obtained from other parties than the current supplier, although certain problems may arise in relation to switching supplier. In addition, the legislative proposal will probably lead to a situation where energy companies will require security or terminate the agreement in an earlier stage, as soon as they realise that there are problems with the payment of invoices for the supply/transport of electricity. The costs in relation thereto and in relation to the obligation to continue the supply during bankruptcy, may lead to higher costs of energy distribution companies which will probably be included in the terms for the supply of electricity. [Dutch] Onlangs heeft de Tweede Kamer het wetvoorstel met betrekking tot de

  6. La calificación del concurso tras la reforma introducida en la Ley Concursal por la Ley 38/2011 = The qualification of the bankruptcy after the reform carried out in the insolvency act by the Law 38/2011

    Directory of Open Access Journals (Sweden)

    María Angustias Díaz Gómez

    2012-03-01

    Full Text Available ResumenEl objeto de este trabajo es analizar la calificación del concurso, tema éste de gran importancia dentro de la institución del concurso de acreedores. La calificación del concurso se regula en España en la Ley Concursal 22/2003, de 9 de julio, que ha sido modificada últimamente por la Ley 38/2011, de 10 de octubre. Se trata de reflexionar sobre esta normativa, destacando los aspectos más novedosos y significativos introducidos por esta Ley en la calificación del concurso.Con el fin de profundizar en el estudio de la calificación del concurso, tras unas consideraciones introductorias, se analizan aspectos fundamentales en la calificación, tales como los presupuestos de la calificación; la complicidad de un tercero que coopere con el deudor en algún acto generador o agravante de la insolvencia; las consecuencias jurídicas que derivan de la calificación del concurso; la problemática que suscita la sustitución de los inhabilitados como consecuencia de la sentencia de calificación; la calificación en el supuesto de intervención administrativa; la tramitación de la sección de calificación, cerrando el trabajo con una conclusión, a modo de reflexión final, sobre el tema que es objeto de estudio.AbstractThe object of this work is to analyze the qualification of the bankruptcy, topic of great importance inside the institution of bankruptcy. The qualification of the bankruptcy is regulated in Spain in the Insolvency Act 22/2003, of July 9, which has been modified lately by the Law 38/2011, of October 10. It is a question of thinking about this regulation, emphasizing the most new and significant aspects introduced by this Law in the qualification of the bankruptcy.In order to penetrate into the study of the qualification of the bankruptcy, after a few introductory considerations, fundamental aspects are analyzed in the qualification, such as the budgets of the qualification; the complicity of a third party that he cooperates

  7. Predicción de quiebras empresariales en economías emergentes: uso de un modelo logístico mixto || Bankruptcy Prediction in Emerging Economies: Use of a Mixed Logistic Model

    Directory of Open Access Journals (Sweden)

    Caro, Norma Patricia

    2013-01-01

    Full Text Available Este trabajo replica y adapta el modelo de Jones y Hensher (2004 a los datos de una economía emergente con el propósito de evaluar su validez externa. Se compara el desempeño del modelo logístico estándar en relación con el modelo logístico mixto para predecir el riesgo de crisis en el periodo 1993-2000, utilizando estados contables de empresas argentinas y ratios definidos en estudios de Altman y Jones y Hensher. Como en estudios anteriores, rentabilidad, rotación, endeudamiento y flujo de fondos operativos explican la probabilidad de crisis financiera. La contribución de esta nueva metodología reduce la tasa de error del tipo I a un 9 %. Se demuestra que el modelo logístico mixto, que tiene en cuenta la heterogeneidad no observada, supera ampliamente el desempeño del modelo logístico estándar. || This study is a replication and adaptation of Jones and Hensher (2004 model in an emerging economy with the purpose of testing its eternal validity. It compares the logistic standard model's performance with the logistic mixed model to predict bankruptcy risk of Argentinean companies between 1993-2000 by using financial statements and ratios defined in previous studies by Altman and Jones and Hensher. Similar to previous studies, profitability, asset turnover, debt and cash flow from operations explain financial distress' probability. The main contribution of this new methodology is the important reduction of error type I to the 9 %. This study asserts that the logistic mixed model, that considers the effect of non-observed heterogeneity, significantly improves the performance of the logistic standard model.

  8. 个人破产的文化基础探微--再访成中英教授%A Cultural Probe into Personal Bankruptcy--An Interview with Chungying Cheng

    Institute of Scientific and Technical Information of China (English)

    郭兴利; 成中英

    2015-01-01

    definitely deduced from culture but that laws should at least not violate cultural spirits or values. Moreover, under the guidance and regulation of laws, a society can actualize its cultural qualities. Credit, the most important necessity for the development of a society, is supposed to be the basis of personal bankruptcy. Schools of Confucianist, Legalist and Military Strategist all attach great importance to credit. The Confucian believes that, to achieve creditability in communication, people should consider circumstances and exclude all kinds of untrustworthy possibilities and relationship. In traditional Chinese values of“Four teachings”,“Five constant virtues”and“Five relations”, credit was ranked the last indicating that credit results from the development of other values instead of implying the priority of other values. Legalist believes that credit is built on faithfulness and therefore they calls for faithfulness. The monarch cannot disclose the governing method to his people, not because he doesn��t believe in his subjects, but that it’s the governor��s secret. Military Strategist believes in strategy, which does not mean they don’t believe in faithfulness. It’s a harmless and even beneficial strategy they pursue. In an open and transparent society, laws will become increasingly important. The social order should be based on laws, and the political authority must maintain the dignity of the law, which is very favorable for credibility construction. Controlling on power is very important for credibility construction, while the connivance of a few power abusers will lead to the collapse of social credibility. Personal bankruptcy agrees with the notion of compromise in traditional Chinese culture, but doesn��t fit in with such notions as forgiveness, salvation, assisting the weak and poor, concealing one��s wickedness and boast of one’s goodness, son��s obligation to pay his father��s debt, or traditional views of

  9. A Strategic Market Game with Active Bankruptcy

    OpenAIRE

    John Geanakoplos; Ioannis Karatzas; Martin Shubik; William D. Sudderth

    1998-01-01

    We construct stationary Markov equilibria for an economy with fiat money, one non-durable commodity, countably-many time periods, and a continuum of agents. The total production of commodity remains constant, but individual agents' endowments fluctuate in a random fashion, from period to period. In order to hedge against these random fluctuations, agents find it useful to hold fiat money which they can borrow or deposit at appropriate rates of interest; such activity may take place either at ...

  10. Human Capital, Bankruptcy and Capital Structure

    OpenAIRE

    Jonathan B. Berk; Richard Stanton; Josef Zechner

    2007-01-01

    We derive a firm's optimal capital structure and managerial compensation contract when employees are averse to bearing their own human capital risk, while equity holders can diversify this risk away. In the presence of corporate taxes, our model delivers optimal debt levels consistent with those observed in practice. It also makes a number of predictions for the cross-sectional distribution of firm leverage. Consistent with existing empirical evidence, it implies persistent idiosyncratic diff...

  11. Bankruptcy Risk and Imperfectly Enforced Emissions Taxes

    OpenAIRE

    John K. Stranlund; Wei Zhang

    2008-01-01

    Under favorable but reasonable conditions, an imperfectly enforced emissions tax produces the efficient allocation of individual emissions control; aggregate emissions are independent of whether enforcement of the tax is sufficient to induce the full compliance of firms, and differences in individual violations are independent of firm-level differences. All of these desirable characteristics disappear when some firms under an emissions tax risk bankruptcy—the allocation of emissions control i...

  12. Academic Bankruptcy: Who Can Afford It?

    Science.gov (United States)

    Browne, Arthur D.

    1987-01-01

    Features of programs that readmit students who have previously failed scholastically are outlined, the potential for success of "forgiven" students is discussed, and considerations in forming policy concerning these students are examined. (MSE)

  13. Nortel sheds staff as bankruptcy bites

    Science.gov (United States)

    Howell, Elizabeth

    2009-09-01

    Thousands of jobs are under threat as bankrupt Nortel Networks - once Canada's largest telecoms company and a major employer of physicists - begins selling its divisions to satisfy creditors. Nortel, which employs 35 000 people worldwide, sold its wireless section to Sweden's Ericsson for C 1.13bn (£626m) in late July, but no buyers have yet been announced for other sectors.

  14. Rate shock's ''day after'': bailout or bankruptcy

    International Nuclear Information System (INIS)

    Utility regulators must decide whether to allow a bailout for utilities with unfinished or cancelled plants, but there may be financial and regulatory obstacles to non-utility financing. New investors may want take-or-pay contracts, or contractors may agree to complete plants at a fixed cost. The problem for ratepayers is that bailouts allow utilities to complete uneconomical plants. Citizens are fighting back against high rate increases in several state legislatures, which are considering a variety of initiatives to deal with cost recovery, construction work in progress, cancellations, and cost overruns

  15. From near bankruptcy to a uranium bonanza

    International Nuclear Information System (INIS)

    Niger is becoming the world's second largest producer of uranium. The first large deposits were discovered in 1966, and production from the mines at Arlit began in 1971. The new Akouta mine has recently come into production. Uranium production from these two mines is briefly discussed

  16. The Enlightenment of Wuxi Suntech’ s Bankruptcy Against the Background of Anti-Dumping and Anti-Subsidy%欧美“双反”背景下我国出口龙头企业尚德破产启示

    Institute of Scientific and Technical Information of China (English)

    殷功利

    2014-01-01

    尚德的破产与金融危机、盲目产能扩张引起的行业恶性价格战、欧美“双反”调查及自身决策失误有关。我国应启动国内光伏应用市场,实现出口市场的多元化;加强自主创新,加强产业集中性,改变光伏企业发展模式;运用对外直接投资战略,积极应对美欧国家采取的“双反”措施,争取让其承认我国“市场经济”地位。%Wuxi Suntech’s bankruptcy is related to financial crisis, the blind expansion of production capacity caused by vi-cious industry, European anti-dumping and anti-subsidy investigation and its own decision-making errors.Enterprises should open up the domestic market of photovoltaic application , realize the diversification of export markets , strengthen the independent innova-tion, strengthen industrial concentration, change the development mode of photovoltaic enterprises, use direct foreign investment, positively respond to anti-dumping and anti-subsidy measures of the US and European countries, and try to make China’s market economy admitted .

  17. VISIÓN CRÍTICA DESDE EL ANÁLISIS ECONÓMICO DEL DERECHO AL SISTEMA DE VERIFICACIÓN DE CRÉDITOS Y REALIZACIÓN DE ACTIVOS DE LA LEY DE QUIEBRAS CHILENA A CRITICAL VIEW, FROM THE ECONOMIC ANALYSIS OF LAW, TO CLAIM'S VERIFICATION AND ADMISSION SYSTEM, AND LIQUIDATION OF ASSETS, IN CHILEAN BANKRUPTCY LAW

    Directory of Open Access Journals (Sweden)

    Raúl Núñez Ojeda

    2012-01-01

    Full Text Available En el presente artículo, los autores sostienen que, desde la perspectiva del análisis económico del derecho, las etapas de verificación de créditos y realización de activos, en el marco de una quiebra, deben perseguir como objetivo normativo, una mayor recuperación de créditos. Para tal efecto, los autores describen dichas etapas, e indican sus deficiencias, proponiendo ciertas pautas de reforma enmarcadas en el análisis económico del derecho y el derecho comparado.In this article, the authors adopt an approach based on the economic analysis of law to argue that the stages of verification and admission of claims, and of liquidation of assets, in bankruptcy cases, should aim to enhance recoveries and benefits for creditors, as a normative objective. In this regard, the authors describe these stages, pointing out the deficiencies of current law, and proposing certain guidelines for a reform framed in the economic analysis of law and in comparative law.

  18. Diagnosis of Bankruptcy in Fuzzy Raw Data Диагностика банкротства при нечетких исходных данных

    Directory of Open Access Journals (Sweden)

    Bachkir Irina G.

    2012-12-01

    Full Text Available The article describes the method of calculation bankruptcy risk level using fuzzy values of controlled parameters financial condition. The conclusion is based on the calculation of the regression polynomial values, coefficients of which founded by the method of pair comparisons.В статье рассмотрена методика расчета уровня риска банкротства с использованием нечетких значений контролируемых параметров финансового состояния. Заключение производится на основе расчета значений регрессионного полинома, коэффициенты которого отыскиваются методом попарных сравнений.

  19. The economic constitucional principals and the positivation by the law of bankruptcies and recovery of the companies Os princípios econômicos constitucionais e a positivação pela lei de falências e recuperação das empresas

    Directory of Open Access Journals (Sweden)

    Henrique Afonso Pipolo

    2007-12-01

    Full Text Available From the insertion of the principles and values in a Constitution, all the constitutional rules and infraconstitutional must be said by them. In the case of the Law of Bankruptcies and Recovery of the Companies (Law n. 11.101/05, such orientation has been observed accurately, in reason of the following principles that surrounds the Economical Order: private property, social activity of the property and the company, free competition, guarantee of the full job, suppliment of the regional and social inequalities and differentiated treatment for small and micro companies. The main purpose of preserving the economically viable companies is exposed by such law enabling in reason of the reality, effectively, to see the effects of the value of the social activity that eradicates by the Brazilian Juridical Order, including for the economical constitucional field. This process of positivation builds a new panorama in the world of business in the management of business politics.A partir da inserção dos princípios e valores em uma Constituição (no caso brasileiro a Constituição Federal de 1988, todas as normas constitucionais e infraconstitucionais produzidas na continuação do processo legislativo, devem ser por eles pautadas. No caso da Lei n. 11.101/05 denominada Lei de Falências e Recuperação das Empresas, tal orientação se observou, notadamente, diante dos seguintes princípios que norteiam a ordem econômica: propriedade privada, função social da propriedade e da empresa, livre concorrência, garantia do pleno emprego, suprimento das desigualdades regionais e sociais e tratamento diferenciado para as pequenas e micro empresas. O objetivo de preservar empresa economicamente viável está exposto por meio da referida lei possibilitando diante da realidade, efetivamente, vivenciar os efeitos do valor da função social que se irradia pela ordem jurídica brasileira, inclusive para o campo econômico-constitucional. Este processo de

  20. 論智慧財產權證券化的法律問題―以證券化法、擔保設定及破產問題為核心 Legal Issue in IP Securitization: Securitization Law, Guarantee Setting and Bankruptcy

    Directory of Open Access Journals (Sweden)

    王偉霖 Wei-Lin Wang

    2013-06-01

    cash flow in IP securitization, which result in investors’ preference in other financial instruments. Therefore, increasing the stability and predictability of cash flow from legal and business aspect, shall be critical to the motivation of IP securitization. This study is to investigate several legal issues in IP securitization, such as specialized legislation, improvement on IP rights registration and guarantee filing system, influences on securitization by bankruptcy trustee’s decision upon originator’s bankruptcy, etc. The discussion will explore relevant regulations in the mature market of U.S. IP securitization, and make comparison and give advices to relevant domestic regulations, providing a greater motivation of IP securitization in Taiwan and improve domestic enterprises’ funding pipeline.

  1. Financial Structure and Bankruptcy Risk in Japanese Companies

    OpenAIRE

    Sadahiko Suzuki; Richard W Wright

    1985-01-01

    Financial structure and the nature of financial risk in Japanese companies differ substantially from those of U.S. firms. As a result, the application of U.S. standards is likely to produce misleading conclusions for creditors, investors and competitors. This article examines the unique institutional relationships and the nature of debt and equity claims that are central to understanding financial risk in Japan. It reports the results of empirical testing of the types of measures that more ac...

  2. Weighted Bankruptcy Rules and Transboundary Water Resources Allocation

    NARCIS (Netherlands)

    Mianabadi, H.; Mostert, E.; Pande, S.; Van de Giesen, N.C.

    2015-01-01

    One significant problem of transboundary river basins causing various challenges and disputes throughout the world is that because of increasing water resource variability and consumption, the water demand often exceeds water availability. Hence, one of the main challenges in transboundary river bas

  3. 17 CFR Appendix A to Part 190 - Bankruptcy Forms

    Science.gov (United States)

    2010-04-01

    ... Order for Relief 1. Assure that the commodity broker has notified the Commission and its designated self... designated self-regulatory organization (§ 190.02(a)(1)); margin calls should be issued if necessary (§ 190... broker), you may instead request now, or at any later time, that the trustee purchase...

  4. Essays on bankruptcy, mortgage default, and regional migration

    OpenAIRE

    Oswald, F

    2015-01-01

    This thesis is about the role of housing as a consumption good and a risky asset, and how it interacts with other choices like consumption, default, and migration over the lifecycle. In the first chapter the focus is on a quasi natural experiment in the State of Nevada, which abolished deficiency judgments for purchase mortgage loans made after October 2009. We test the effect of the law change on mortgage supply and demand, as well as on mortgage default. We find strong evidence that lenders...

  5. Bankruptcy Costs, Liability Dollarization, and Vulnerability to Sudden Stops

    OpenAIRE

    Uluc Aysun; Adam Honig

    2008-01-01

    Emerging market countries that have improved institutions and attained intermediate levels of institutional quality have experienced severe financial crises following capital flow reversals. However, there is also evidence that countries with strong institutions and deep capital markets are less affected by external shocks. We reconcile these two observations using a calibrated DSGE model that extends the financial accelerator framework developed in Bernanke, Gertler, and Gilchrist (1999). Th...

  6. Restoring a Fish Stock: A Dynamic Bankruptcy Problem

    OpenAIRE

    Anders Skonhoft; Elena Inarra

    2007-01-01

    Total Allowable Catch (TAC) regulating schemes have been introduced in most fisheries. TAC distribution following the Proportional Rule, based on historical catches, implies that harvesters or vessel groups which have captured more in the past and contributed to overfishing are getting larger quotas than groups that have contributed less to overfishing. In contrast to this rule a more egalitarian rule, the Constrained Equal Award Rule, is proposed for distributing the TAC. Contingent upon the...

  7. On the bankruptcy of private higher education institutions in China

    Institute of Scientific and Technical Information of China (English)

    ZHOU Guoping; XIE Zuoxu

    2007-01-01

    In recent years,closing down private higher education institutions (HEIs)has become a serious problem in China.It seems that doubt is cast on the rationality of private HEIs and severe competition contributes a lot to their development.Many problems in the process of self-development are caused by both internal and external factors.From the perspective of sustainable development and the healthy development of students,priority should be given to the evolution of an idea to provide a positive environment for the development of private HEIs.This paper is an effort to deal with the statement that higher education in China is a seller's market and aims to do an objective estimate of the development space for private HEIs.In addition,it shows a clear understanding of establishing the prediction system for relevant issues of private higher education to guarantee the sound development of private HEIs.

  8. Silencing the noise : asbestos liabilities, accounting and strategic bankruptcy.

    OpenAIRE

    MOERMAN, L; S. Van der Laan

    2015-01-01

    The legacy of the global exploitation of asbestos provides an illustrative case to examine corporate strategy in response to the significant financial risk presented by the long-tail liability. The James Hardie group was the dominant asbestos manufacturing concern in Australia and, confronted with the uncertainties of burgeoning long-tail tort claims, embarked on a radical corporate reorganization. At the centre of the reorganization was the creation of a business unit of limited potential to...

  9. The Lehman Brothers Bankruptcy B: Risk Limits and Stress Tests

    OpenAIRE

    Rosalind Z. Wiggins; Andrew Metrick

    2014-01-01

    Investment banks are in the business of taking calculated risks. Risk management infrastructure facilitates the safe pursuit of profits and the balancing of associated risks. By 2006, Lehman Brothers was thought to have a very respectable risk management system, and even its regulator, the Securities and Exchange Commission, viewed its risk framework as being fully compliant with regulatory requirements. In its public disclosures, Lehman characterized its risk controls as “meaningful constrai...

  10. Risky Human Capital and Alternative Bankruptcy Regimes for Student Loans

    OpenAIRE

    Felicia Ionescu

    2011-01-01

    In a heterogeneous life cycle economy with human capital accumulation, the option to discharge student loans under a liquidation regime helps alleviate some of the risk of investing in human capital. However, exclusion from borrowing is especially costly for high school graduates with low ability and human capital, for whom the gains from this insurance option are large. Replacing liquidation with reorganization induces significant allocational consequences across education groups. Overall, r...

  11. Bankruptcy, medical insurance, and a law with unintended consequences.

    Science.gov (United States)

    Koch, Thomas G

    2014-11-01

    Congress passed the Emergency Medical Treatment and Active Labor Act (EMTALA) in 1986, guaranteeing a standard of medical care to anyone who entered an emergency room. This guarantee made default a more reliable substitute for medical insurance. I construct a tractable structural model of the medical insurance market and find that repealing EMTALA would increase the fraction of the population with insurance while decreasing its price. PMID:24038360

  12. Bankruptcy prediction : static logit and discrete hazard models incorporating macoreconomic dependencies and industry effects

    OpenAIRE

    Sheikh, Suleman; Yahya, Muhammad

    2015-01-01

    In this thesis, we present firm default prediction models based on firm financial statements and macroeconomic variables. We seek to develop reliable models to forecast out-of-sample default probability, and we are particularly interested in exploring the impact of incorporating macroeconomic variables and industry effects. To the best of our knowledge, this is the first study to account for both macroeconomic dependencies and industry effects in one analysis. Additionally, we ...

  13. Bankruptcy by catastrophes for major multi-nationals: stock exchange sensitivity for three catastrophes

    NARCIS (Netherlands)

    Van Gulijk, C.; Ale, B.J.M.

    2012-01-01

    This paper investigates the effect of major catastrophes have on stock exchange values for the major multi-nationals. The paper demonstrates that the Sharpe analysis is more sensitive in identifying effects than just following the daily stock values for assessing market response. It was found that m

  14. Bankruptcy and Voluntary Liquidation : Evidence for New Firms in East and West Germany after Unification

    OpenAIRE

    Prantl, Susanne

    2003-01-01

    Exploiting the unique economic situation after German unification, I investigate how exit decisions deviate between new firms in a transition and a comparatively stable market environment. Two competing exit mechanisms are considered: entrepreneurial self-selection via voluntary liquidation and external selection based on insolvency regulation. Distinguishing between the competing exit modes proves to be crucial in semi-parametric propor- tional hazard-rate estimations. Comparing East and Wes...

  15. Large deviations for generalized compound Poisson risk models and its bankruptcy moments

    Institute of Scientific and Technical Information of China (English)

    HU; Yijun

    2004-01-01

    We extend the classical compound Poisson risk model to the case where the premium income process, based on a Poisson process, is no longer a linear function.For this more realistic risk model, Lundberg type limiting results on the finite time ruin probabilities are derived. Asymptotic behaviour of the tail probabilities of the claim surplus process is also investigated.

  16. 75 FR 75162 - Protection of Cleared Swaps Customers Before and After Commodity Broker Bankruptcies

    Science.gov (United States)

    2010-12-02

    ... option customers of such futures commission merchant.'' 46 FR 33315 (1981). As adopted, however, the... the right to apply all customer margin funds within their custody to satisfy nonproprietary... use of customer funds to satisfy the FCM's own obligations. Consequently, customer margin...

  17. Data Mining using Advanced Ant Colony Optimization Algorithm and Application to Bankruptcy Prediction

    OpenAIRE

    Vishal Arora; Vadlamani Ravi

    2013-01-01

    Ant Colony Optimization (ACO) is gaining popularity as data mining technique in the domain of Swarm Intelligence for its simple, accurate and comprehensive nature of classification. In this paper the authors propose a novel advanced version of the original ant colony based miner (Ant-Miner) in order to extract classification rules from data. They call this Advanced ACO-Miner (ADACOM). The main goal of ADACOM is to explore the flexibility of using a different knowledge extraction heuristic app...

  18. Variable Selection in Data Mining: Building a Predictive Model for Bankruptcy

    OpenAIRE

    Foster, Dean P.; Stine, Robert A.

    2001-01-01

    We develop and illustrate a methodology for fitting models to large, complex data sets. The methodology uses standard regression techniques that make few assumptions about the structure of the data. We accomplish this with three small modifications to stepwise regression: (1) We add interactions to capture non-linearities and indicator functions to capture missing values; (2) We exploit modern decision theoretic variable selection criteria; and (3) We estimate standard error using a conservat...

  19. Financial restructuring can be problematic under Chapter 11. Pre-packaged bankruptcy saves time and money.

    Energy Technology Data Exchange (ETDEWEB)

    Goffman, J.M.; Ashmead, J.R. [O`Sullivan, Graev & Karabell, NY (United States)

    1995-05-15

    For better or worse, deregulation is now a factor in the electric utility industry. As a general proposition, deregulation makes for increased competition, which in turn will trim costs for consumers. Deregulation of the electric industry means that utilities face the prospect of freezing or reducing rates to retain market share. Stranded investments and the burdens of above-market supply contracts and construction and development contracts (especially nuclear-related contracts) will place additional pressure on these utilities and further reduce their revenue. Ultimately these problems could hinder a utility`s ability to service its debt, invest for the future, and provide a reasonable rate of return to investors.

  20. The Road to Bankruptcy: A study on Predicting Financial Distress in Sweden

    OpenAIRE

    Quarcoo, Nii Lartey; Smedberg, Patrik

    2014-01-01

    This thesis aims to study whether cash flow ratios can predict corporate financial distress in Sweden by employing multiple discriminant analysis. It was inspired by the Altman Z-score, which was adjusted for this aim. This study adopted a positivist epistemology and objectivist ontology. The research approach taken was a deductive one which employed quantitative methods in testing the hypotheses developed. The hypotheses were tested through means of accuracy and the Independent Samples Test....

  1. Towards a sovereign bankruptcy procedure and greater restraint in IMF crisis lending. An interim assessmen

    Directory of Open Access Journals (Sweden)

    Curzio Giannini

    2003-06-01

    Full Text Available The paper reviews the area of the international financial architecture relating tosovereign crisis resolution. It is argued that shifting part of the burden of crisisresolution onto creditors may encourage debtor countries to take early action to counter an unsustainable debt path. Collective action clauses, the sovereign debt restructuring mechanism, and ceilings on IMF loans, are all necessary components of a new and better crisis resolution framework.

  2. Renewable resource regulation and uncertain prices: The role of financial structure and bankruptcy

    International Nuclear Information System (INIS)

    We analyze the interaction between regulatory policies and the financial structure of a fishery and show that firms with debts may respond differently to regulations than firms that have not accumulated debts. There are conditions where more stringent regulation is counterproductive, providing a perverse incentive to increase harvesting effort. We show that optimal regulation depends on the sector's financial structure, and demonstrate that there are cases when intervention is counterproductive, or too costly to implement. There are also cases where successful regulatory intervention can only be implemented when accompanied by a sufficiently large subsidy. (author)

  3. The Scarring Effects of Bankruptcy: Cumulative Disadvantage across Credit and Labor Markets

    Science.gov (United States)

    Maroto, Michelle

    2012-01-01

    As the recent economic crisis has demonstrated, inequality often spans credit and labor markets, supporting a system of cumulative disadvantage. Using data from the National Longitudinal Survey of Youth, this research draws on stigma, cumulative disadvantage and status characteristics theories to examine whether credit and labor markets intersect…

  4. Financial distress and bankruptcy prediction among listed companies using accounting, market and macroeconomic variables

    NARCIS (Netherlands)

    Hernandez Tinoco, Mario; Wilson, Nick

    2013-01-01

    Using a sample of 23,218 company-year observations of listed companies during the period 1980–2011, the paper investigates empirically the utility of combining accounting, market-based and macro-economic data to explain corporate credit risk. The paper develops risk models for listed companies that

  5. CONTROLLING IN BUSINESS MANAGEMENT DETERMINATION OF A CREDIT LIMIT BASED ON BANKRUPTCY AND SOLVENCY MODELS

    OpenAIRE

    Vochozka, Marek; Stehel, Vojtěch

    2014-01-01

    Most experts agree that profit is the main goal in business. Real income becomes more preferable. However, profit is only a virtual value, because many companies are not able to collect effectively their receivables. Their business partners do not pay for their liabilities, i. e. they do no pay for the received goods, materials and services. So the companies should implement such a system of prevention that helps them to choose collaborates, which will be able to pay their debts. One of the p...

  6. Controlling Claims and Liabilities and its Use for Identification of Bankruptcy /

    Directory of Open Access Journals (Sweden)

    Sternadelová Michaela

    2011-06-01

    Full Text Available Článek se zabývá controllingem pohledávek a závazků, objasňuje jeho pojmy a principy využívané v praxi. Vysvětluje také, jak lze v podniku pohledávky monitorovat dle časového hlediska a také dle vybraných ukazatelů finanční analýzy. Následně na příkladu vybrané firmy v úpadku ukazuje, jak lze aplikovat metody monitoringu pohledávek při sledování struktury podnikových závazků. Analýzou rozvahy a přílohy účetní závěrky je identifikován úpadek firmy.

  7. The Lehman Brothers Bankruptcy F: Introduction to the ISDA Master Agreement

    OpenAIRE

    Christian M. McNamara; Andrew Metrick

    2014-01-01

    When Lehman Brothers Holdings, Inc. (LBHI) sought Chapter 11 protection, the more than 6,000 counterparties with which its subsidiaries had entered into over 900,000 over-the-counter (OTC) derivatives transactions faced the question of how best to respond to protect their interests. The existence of standardized documentation developed by the International Swaps and Derivatives Association (ISDA) for entering into such transactions meant that the counterparties likely thought that they were d...

  8. Default risk, bankruptcy procedures and the market value of life insurance liabilities

    NARCIS (Netherlands)

    A. Chen; M. Suchanecki

    2007-01-01

    The topic of insolvency risk in connection with life insurance companies has recently attracted a great deal of attention. In this paper, the question is investigated of how the values of the equity and of the liability of a life insurance company are affected by the default risk and the choice of t

  9. WILCOX COUNTY, ALABAMA--A STUDY OF SOCIAL, ECONOMIC, AND EDUCATIONAL BANKRUPTCY. REPORT OF AN INVESTIGATION.

    Science.gov (United States)

    BROADUS, JAMES; AND OTHERS

    THE REQUEST FOR THIS INVESTIGATION BY THE SPECIAL COMMITTEE OF THE NATIONAL EDUCATION ASSOCIATION COMMISSION ON PROFESSIONAL RIGHTS AND RESPONSIBILITIES RESULTED FROM THE FIRING OF NINE NEGRO TEACHERS IN WILCOX COUNTY. THE STUDY ITSELF IS MORE INCLUSIVE, INCORPORATING THE FINDINGS AND CONCLUSIONS OF SEPARATE STUDIES IN POVERTY, SCHOOL FINANCE,…

  10. Are large-scale bankruptcies in nuclear technology changing energy policy?

    International Nuclear Information System (INIS)

    The consequences for nuclear energy use of the closing of the three large-scale projects WAA Wackersdorf, THTR in Hamm-Uentrop and SB Kalkar, the development of nuclear energy and the particular dangers connected with it are here presented and didactically reappraised. (DG)

  11. Úpadek společnosti ve vztahu k účetnictví a oceňování

    OpenAIRE

    Píša, Petr

    2008-01-01

    Diploma thesis dwells on company's bankruptcy according to bankruptcy law and interconnects the institute of bankruptcy with areas of financial analysis, accounting, valuation and, further on, with business and criminally law.

  12. Framework for evaluation risk of bankruptcy for economic entities using specific models and methods from economic analysis and information technologies

    Directory of Open Access Journals (Sweden)

    Irina Cibotariu

    2013-02-01

    Full Text Available

    Currently, there is greater interest on economic and financial analysis of the firm, due to the feeling of instability caused by the global financial crisis. Simply put, governments, and millions of individuals holding shares in the stock market as small investors were placed in an unprecedented situation. This paper aims to estimate the default risk through the use of IT.

    Keywords: financial analysis, business models, knowledge, rate of economic, expert systems


  13. Framework for evaluation risk of bankruptcy for economic entities using specific models and methods from economic analysis and information technologies

    OpenAIRE

    Irina Cibotariu; Eugenia Iancu; Tiberiu Socaciu

    2013-01-01

    Currently, there is greater interest on economic and financial analysis of the firm, due to the feeling of instability caused by the global financial crisis. Simply put, governments, and millions of individuals holding shares in the stock market as small investors were placed in an unprecedented situation. This paper aims to estimate the default risk through the use of IT.

    Keywords: financial analysis, business models, knowledge, rate of...

  14. Analysis of auditor`s reports and bankruptcy risk in banking sector in the Republic of Serbia

    OpenAIRE

    Milovan Stanisic; Danka Stefanovic; Nada Arezina; Vule Mizdrakovic

    2013-01-01

    This paper aims to point out the significance of external audit and auditor’s reports. The stability of banks and its operations are vital not only for efficient financial system functioning, but also for overall industry. The banking sector, both in developed and undeveloped countries, experienced financial crisis in the last few years. Considering these circumstances and the fact that demands of financial statements users grow in complexity, their control is essential. We pro...

  15. 78 FR 41082 - Agency Information Collection Activities; Collection; Comments Requested: Application for...

    Science.gov (United States)

    2013-07-09

    ... abstract. to student debtors concerning personal financial management. Other: None. Congress passed a bankruptcy law that requires individuals who file for bankruptcy to complete an approved personal...

  16. 77 FR 47093 - Agency Information Collection Activities: Collection; Comments Requested; Application for...

    Science.gov (United States)

    2012-08-07

    ... courses brief abstract: to student debtors concerning personal financial management. Other: None. Congress passed a bankruptcy law that requires individuals who file for bankruptcy to complete an...

  17. PRAVNI I RAČUNOVODSTVENI ASPEKTI STEČAJA PREDUZEĆA

    Directory of Open Access Journals (Sweden)

    Borka Popović

    2013-01-01

    Full Text Available Initiation of bankruptcy proceedings that represents an enforced liquidation of the enterprise and its removal from the Court Register is very common and inevitable event nowadays. Bankruptcy is usually seen as the ultimate end of the enterprise, but also as an opportunity for creditors, who are the most damaged by the insolvency of the enterprise, to reimburse at least a part of their receivables through bankruptcy proceedings. The legal and accounting aspects of the bankruptcy proceedings are elaborated in this paper. Bankruptcy Law of the Republic of Srpska establishes two bankruptcy reasons: insolvency and imminent risk of insolvency.Illustration of a hypothetical example shows how, after the decision was made to initiate bankruptcy proceedings, not only the initial but also the final bankruptcy balance sheets are made, bankruptcy quota is determined and how to settle creditors according to the relevant payment line. Finally, an overview of the financial aspects of the implementation of the bankruptcy proceedings is given, i.e. consequences of bankruptcy, not only for a specific enterprise where such proceedings is conducted, but also on the economy as a whole, especially in the case of bankruptcy of a number of enterprises. However, some questions and dilemmas are left open because Bankruptcy Law does not always contain clear provisions in respect of certain accounting procedures, and there is a problem of lack of financial discipline in our economy, because the bankruptcy proceedings is not always proposed when the conditions are created.

  18. General Considerations on a Report of Research about the Company’s Risk Assessment and Forecast for Bankruptcy Evaluation and Prognosis

    OpenAIRE

    Maria Alexandra Ivan; Gheonea Victoria; Constandache Nicoleta

    2010-01-01

    The research rapport is a synthesis concerning the conclusions of an already done research. This is a project laying at the basis of the theoretical, methodological and practical aspects of the process. The research project implies the existence of specific knowledge and skills acquired by means of personal experience. The research proposal has to include the stages as provided in the present paper. This plan is just an option which will be further improved in order to make an action schedule.

  19. 26 CFR 301.7433-2 - Civil cause of action for violation of section 362 or 524 of the Bankruptcy Code.

    Science.gov (United States)

    2010-04-01

    ... has a duty to mitigate damages. The total amount of damages recoverable under this section is the...) Litigation costs and administrative costs not recoverable as actual, direct economic damages. Litigation costs and administrative costs are not recoverable as actual, direct economic damages. These costs...

  20. New York City group leads the way toward a more optimistic future for ASOs. ASO went from near bankruptcy to $26 million.

    Science.gov (United States)

    2004-07-01

    A do-it-yourself AIDS social organization: AIDS service organizations are struggling because of tighter reins on government funding, but an alternative organization in New York City is showing how it can be done. It has developed a successful social entrepreneur program that employs HIV-infected clients, pays them living wages, and makes money from retail, food services, and medical care business entities, contributing three-quarters of the organization's revenues. PMID:15241858

  1. 货币的中介本质与拜金主义的破产%The Mediation Nature of Currency and the Bankruptcy of Money Worship

    Institute of Scientific and Technical Information of China (English)

    刘然

    2011-01-01

    Money worship is the chronic illness of the era of commodity economy society. The critique about it cannot stay at the surface, such as intense words or phenomenon list. The key is to grasp the nature of currency. The nature of currency is often covered by the formula of capital G-W-G and G-W-G'in real life, becoming the aim itself. We should adopt the method of history, from capital to money, from money to goods, and then reaching the products and the indistinctive labor in products. The essence of the currency shows in W-G-W. Currency is the mediation of commodities exchange. The objective Of commodities exchange is to satisfy the need of the people. According to the theory Of mediation, although mediation has the character of both sides of the Contradiction, possessing the advantage, it can be categorized as the factors of contradiction. Its status is under the contradiction. Fetishism covers the human relationship in the first level with the things relationship in the second level. Money worship covers the things relationship with money relationship in third level, then covering the human relationship.%拜金主义批判的关键是抓住货币的本质。货币的本质在现实生活中往往被资本的公式G—W—G和G-W-G’所掩盖,成为目的本身。从资本回归货币,再从货币回归商品。货币的本质在W—G—W的公式中获得显现,货币是物物交换的中介,物物交换的目的是为了满足人的需要。按照中介理论,中介虽然兼具矛盾双方的特点,具有优势,但是中介可以归为矛盾双方的因素,地位在矛盾双方之下。拜物教是用第二个层次的物与物的关系掩盖了第一个层次的人与人的关系;货币拜物教,即拜金主义,用第三个层次的金钱关系掩盖了物与物的关系,进而掩盖了人与人的关系。

  2. Internal Model of Commercial Bank as an Instrument for Measuring Credit Risk of the Borrower in Relation to Financial Performance (Credit Scoring and Bankruptcy Models)

    OpenAIRE

    Belás Jaroslav; Cipovová Eva

    2011-01-01

    Commercial banks generally use different methods and procedures for managing credit risk. The internal rating method in which the client has an important position in the process of granting credit provides a comprehensive assessment of client creditworthiness. The aim of this article is to analyze selected theoretical, methodological and practical aspects of internal rating models of commercial banks within the context of models that measures financial performance and to make a comparison of ...

  3. The Relationship Between Too Big To Fail, Financial Stability and Financial Regulation-Based on the Analysis of Lehman Brothers’ Bankruptcy

    Institute of Scientific and Technical Information of China (English)

    Zhao Shuang

    2016-01-01

    Too Big To Fail was proved by the financial crisis, which swept the globe in 2008. But actually, this phenomenon is a more reflection of the significance of the financial stability and regulation. This passage will try to prove it from the case of Lehman Brothers. I will try to explain what role the government played in it, too.

  4. How a Computer-Training Chain Crashed in Plain Sight: Computer Learning Centers Qualified for Federal Student Aid Even as Bankruptcy Loomed.

    Science.gov (United States)

    Borrego, Anne Marie

    2001-01-01

    Explores how the for-profit, computer training chain Computer Learning Centers continued to operate, enrolling thousands of students and qualifying for millions of dollars in federal student aid, despite three years of legal and regulatory turmoil. (EV)

  5. General Considerations on a Report of Research about the Company’s Risk Assessment and Forecast for Bankruptcy Evaluation and Prognosis

    Directory of Open Access Journals (Sweden)

    Maria Alexandra Ivan

    2010-03-01

    Full Text Available The research rapport is a synthesis concerning the conclusions of an already done research. This is a project laying at the basis of the theoretical, methodological and practical aspects of the process. The research project implies the existence of specific knowledge and skills acquired by means of personal experience. The research proposal has to include the stages as provided in the present paper. This plan is just an option which will be further improved in order to make an action schedule.

  6. The credit market consequences of job displacement

    OpenAIRE

    Benjamin J. Keys

    2010-01-01

    This paper demonstrates the important role of job displacement in the household bankruptcy decision. I develop a dynamic, forward-looking model of unemployment and bankruptcy where persistent negative income shocks increase a household's likelihood of filing for bankruptcy both immediately and in the future. Consistent with the model's predictions, I find that households in the NLSY are 2.5 times more likely to file for bankruptcy in the year immediately following a job loss, at a rate of an ...

  7. Insolvency institutions and efficiency: the Spanish case

    OpenAIRE

    Miguel García-Posada

    2013-01-01

    The paper warns about the potential efficiency losses associated with low business bankruptcy rates (number of firms filing for bankruptcy as a proportion of the total stock of firms) and shows that welfare could be improved by increasing the protection of creditors in the bankruptcy system. These ideas are illustrated with the Spanish case. The paper also predicts a positive correlation between welfare and bankruptcy rates, a finding that seems consistent with the empirical evidence. The arg...

  8. Costs and Recovery Rates in the Dutch Liquidation-Based

    OpenAIRE

    Couwenberg, Oscar; de Jong, Abe

    2007-01-01

    Abstract We present evidence on the efficiency of the resolution of financial distress in bankruptcy in The Netherlands. We employ a unique data set based on the files of the trustees and court offices, which includes the characteristics of the firms before and in the bankruptcy procedures, the details of the bankruptcy process and the outcomes. This data allows us to measure the costs and recovery rates in the Dutch liquidationbased bankruptcy system, and to investigate the determinants of t...

  9. Insolvenční řízení v právní teorii a praxi ČR se zaměřením na konkurz

    OpenAIRE

    Holanová, Lucie

    2011-01-01

    This thesis is dedicated to solutions of the debtor’s bankruptcy. It summarizes the weak points included in law no. 328/1991, The bankruptcy and compensation and highlights the issues that were resolved by adopting a new bankruptcy law no. 182/2006, The bankruptcy and methods of its settling. It also investigates the weak points of the new legislation and proposes its solutions.

  10. PRAVNI I RAČUNOVODSTVENI ASPEKTI STEČAJA PREDUZEĆA

    OpenAIRE

    Borka Popović; Damjan Danilović

    2013-01-01

    Initiation of bankruptcy proceedings that represents an enforced liquidation of the enterprise and its removal from the Court Register is very common and inevitable event nowadays. Bankruptcy is usually seen as the ultimate end of the enterprise, but also as an opportunity for creditors, who are the most damaged by the insolvency of the enterprise, to reimburse at least a part of their receivables through bankruptcy proceedings. The legal and accounting aspects of the bankruptcy proceedings a...

  11. АНАЛИЗ РИСКОВ, ПОРОЖДАЮЩИХ НЕСОСТОЯТЕЛЬНОСТЬ (БАНКРОТСТВО)

    OpenAIRE

    Горулев, Денис

    2007-01-01

    The author classifies various types of business failures, provides an adjusted definition of a business failure (bankruptcy), describes the concept of risk and analyzes its elements. The article examines real and nominal purposes behind the business failure (bankruptcy) procedure, provides a typological study of bankruptcy, and suggests ways and objectives for the further study of the matter.

  12. The Analysis of Bankruptcy Risk Using the Normal Distribution Gauss-Laplace in Case of a Company is the Most Modern Romanian Sea-River Port on the Danube

    Directory of Open Access Journals (Sweden)

    Rodica Pripoaie

    2015-08-01

    Full Text Available This work presents the application of the normal distribution Gauss-Laplace in case of a company is the most modern Romanian sea-river port on the Danube, specialized service providers, with a handling capacity of approx. 20,000,000 tons / year. The normal distribution Gauss-Laplace is the most known and used probability distribution, because it surprises better the evolution of economic and financial phenomena. Around the average, which has the greatest frequency, gravitate values more to less distant than average, but with the same standard deviation. It is noted that, although used in the forecasting calculations, analysis of profitability threshold - even ignores the risk of decisional operations (regarding deviations between the forecast and achievements, which may, in certain circumstances, influence much the activity of the company. This can be held into account when carefully studying the evolution of turnover follows a law of probability. In case not exist any information on the law of probability of turnover and no reason that one case appear more than another, according of Laplace law, we consider that these cases are uniformly distributed, therefore they follow a normal distribution.

  13. Bankruptcy Probability with Interference Item and a Poisson Process of the Premium Collection Number%带干扰的保费收取次数为Poisson过程的破产概率

    Institute of Scientific and Technical Information of China (English)

    张相虎; 陈贵磊

    2005-01-01

    在经典风险模型的基础上,研究了带有干扰项的保费收取次数是一个Poisson过程的破产概率模型.讨论了赢余过程的性质,利用赢余过程的性质,给出了有关破产概率的两个结论.

  14. 我国企业资产证券化中破产隔离与真实销售研究%A Study on Bankruptcy Remoteness and True Sale of Corporate Asset-backed Securitization in China

    Institute of Scientific and Technical Information of China (English)

    束学岭; 曹崇延

    2008-01-01

    在证监会主导下,券商以专项资产管理计划为载体进行企业资产证券化试点.专项资产管理计划应用于资产证券化有其合理性和易操作性,但是由于其不具备法律主体资格,难以完全实现基础资产的真实销售;券商破产会直接影响专项计划的持续运作,导致破产隔离不彻底.为了长期发展企业资产证券化,需要在交易中引入信托概念,赋予受益凭证明确的法律性质,突破目前法律和体制的羁绊;通过建立基础资产选择标准、限制券商角色范围等措施,规范企业资产证券化各个交易环节.

  15. 从美国航空公司的困境看美国的破产保护制度%To View the Bankruptcy Protection System of the United States from the Difficulties its Airlines are Faced with

    Institute of Scientific and Technical Information of China (English)

    韩钧; 陈志武

    2005-01-01

    破产保护与传统意义上的破产程序不同,它鼓励负债企业继续进行经营活动,允许财务上处于困境的企业进行债务重组.破产保护对于参与各方都是有益的.负债企业可以继续运营并防止破产清算,公司员工可以继续保有工作,债权人在债务重组、实现成功的破产保护之后其债权能够得到更好的保障.破产保护还有利于保护行业的健康发展,避免灾难性的倒退.在这一方面,美国破产程序中的破产保护制度对于我国正在修订之中的破产法不无借鉴意义.

  16. Essais sur le processus de défaillance des entreprises en Tunisie : déterminants, recouvrements et spécificités institutionnelles

    OpenAIRE

    LETAIEF, AZIZA

    2014-01-01

    This thesis focuses on the Tunisian bankruptcy process. The objective is to treat the subject from a macroeconomic, microeconomic and legal point of view. The work is preceded by a literature review focused on the main actors in the bankruptcy process: debtors, creditors and bankruptcy law. The first part provides a summary of many research results relating on the one hand, to the different strategies set by debtors and creditors to protect their own interests and on the other hand to the eff...

  17. IMPLEMENTASI KEWENANGAN BANK INDONESIA DALAM KEPAILITAN LEMBAGA PERBANKAN

    OpenAIRE

    GUDIPUNG, FERDINANDO EMANUEL

    2015-01-01

    Legal Writing entitled Implementation Authority of Bank Indonesia in bankruptcy banking institutions with normative legal normatif. Penelitian research method is research that focuses on the positive legal norms in the form of legislation on the implementation of Bank Indonesia Authority Perbankan.tujuan In Bankruptcy Institute research to find out why Bank Indonesia is not never exercise its authority in accordance with the bankruptcy of banking institutions are regulated by law and whether ...

  18. Finanční analýza podniků následně procházejících konkurzem

    OpenAIRE

    Bezuchová, Alena

    2011-01-01

    The work "Financial Analysis of companies undergoing bankruptcy later" deals with the issue of bankruptcy debtor. It analyzes the situation where the company gets into financial distress and financial analysis examines indicators that best represent the financial situation and the impending decline. It continous with bankruptcy and insolvency of the debtor, and these two parts solves from both a legal and from an accounting perspective. Both parts are supplemented by short illustrative exampl...

  19. Renégociation stratégique de la dette, risque comptable et risque juridique

    OpenAIRE

    Chopard, Bertrand; Langlais, Eric

    2007-01-01

    This paper studies the influence of bankruptcy law (depending on whether the law is pro-lenders or pro-borrowers) on the borrowers propensity to demand the renegotiation of their debt, when there exist an asymmetrical information between lenders and borrowers. In the tradition of Law & Economics, we proceed to a study of impact for the main parameters of the model that capture the design of bankruptcy law, showing their influence on the probability of strategic bankruptcy and on the social we...

  20. Metody oceňování podniku v úpadku

    OpenAIRE

    Přikryl, Zbyněk

    2013-01-01

    This thesis deals with methods of business valuation in bankruptcy. It is divided into three parts, the regulation of insolvency, valuation methods and the analysis of a real company in bankruptcy. Legal section discusses legislative regulation of the insolvency proceedings. The second section describes the valuation methods in relation to bankruptcy. The last part analyzes the course of the insolvency proceedings of the company Oděvní podnik a.s. and the valuation of its assets.

  1. Perlindungan Terhadap Hak-Hak Karyawan Dalam Kepailitan Perseroan

    OpenAIRE

    Simamora, Jon Efendi

    2012-01-01

    Bankruptcy or dissolution of a corporation will adversely affect the protection of rights and the future of its employees. Interests of employees of a company that declared bankruptcy was related to the payment of wages and severance. Although the employee was placed as a preferred creditor who already have the right privilage, who will receive the first priority for the company in bankruptcy, but the property company as an insolvent debtor can not pay bills sometimes its debts, in the form o...

  2. Traitement légal de la défaillance et gouvernance : une comparaison internationale

    OpenAIRE

    Christine Pochet

    2001-01-01

    Significant changes in corporate governance may occur when firms face bankruptcy. First, as the worsening of performance becomes more and more obvious, stakeholders will modify their behavior towards the firm. Furthermore, once a bankruptcy procedure is filed (and especially in the case of reorganizations on which we focus), a new balance of power is established by the provisions included in each national bankruptcy law. The aim of this paper is to investigate the legal treatment of bankruptc...

  3. Závazky dlužníků v konkurzu (ukončená řízení v roce 2012)

    OpenAIRE

    Jeřábek, Filip

    2013-01-01

    This bachelor thesis is focused on the main characteristics of bankruptcy. In the section devoted to the theoretical facts, there is a short description of individual subjects and differences between the particular types of receivables as well as the essence of debtor's estate are described. The end of this section is dealing with the legal procedure of bankruptcy -- from submitting the proposal through declaring bankruptcy to monetization of all debtor's assets and drafting of the final repo...

  4. Lehman Brothers: What Did Markets Know?

    OpenAIRE

    Gehrig, Thomas; Haas, Marlene

    2014-01-01

    On September 15, 2008, Lehman Brothers Inc. announced their filing for bankruptcy. The reaction of Lehman's competitors and market participants to this bankruptcy filing announcement provides a unique field experiment of how the insolvency spills over to other financial institutions and how interconnectedness might trigger a financial crisis. Specifically, we analyze transaction prices of major U.S. investment and commercial banks prior to and after the bankruptcy. By decomposing their equity...

  5. Insolvency Resolution and the Missing High Yield Bond Markets

    OpenAIRE

    Bo Becker; Jens Josephson

    2013-01-01

    In many countries, bankruptcy is associated with low recovery by creditors. We develop a model of corporate credit markets in such an environment. Corporate credit is provided by either a bond market or risk-averse banks. Restructuring of insolvent firms happens out of court if in-court bankruptcy is inefficient, giving banks an advantage over bondholders. Riskier borrowers will use bank loans anywhere, but also bonds when bankruptcy is efficient. The model matches empirical debt mix patterns...

  6. Chinese Companies Distress Prediction: An Application of Data Envelopment Analysis

    OpenAIRE

    Li, Zhiyong; Crook, Jonathan; Andreeva, Galina

    2013-01-01

    Bankruptcy prediction is a key part in corporate credit risk management. Traditional bankruptcy prediction models employ financial ratios or market prices to predict bankruptcy or financial distress prior to its occurrence. We investigate the predictive accuracy of corporate efficiency measures along with standard financial ratios in predicting corporate distress in Chinese companies. Data Envelopment Analysis (DEA) is used to measure corporate efficiency. In contrast to previous applications...

  7. Insolvenční řízení

    OpenAIRE

    Sýkorová, Martina

    2011-01-01

    The diploma work is describing the structure, process and the goal of an bankruptcy trial including its economical outcomes and some accounting impacts on the debtor as well as on the creditor. It also explains fundamental terms of this situation such as "property substance", bankruptcy register or the way of registering the receivables to the trial. The following part of this work is applying to the defintion and postition describtion of each bankruptcy trial participant as well as the court...

  8. Postavenie insolvenčného správcu v insolvenčnom konaní

    OpenAIRE

    Šťastný, Tomáš

    2009-01-01

    The main objective of this diploma thesis is to outline the role and position of the bankruptcy administrator in the bankruptcy process. The role of the administrator is specified as a set of rights and obligations that the administrator has got according to the law in every part of the bankruptcy process. The insolvency law assigns administrative, surveying, finding and consulting duties to the administrator. The core of this thesis is a look at the position of the administrator in the liqui...

  9. APOLOGIJA NOVOM HRVATSKOM INSOLVENCIJSKOM PRAVU

    Directory of Open Access Journals (Sweden)

    Dejan Bodul

    2016-03-01

    Full Text Available Bankruptcy Act was first put into service in May 1996. (NN 44/96 and has been changed (supplemented seven times (NN 44/96, 29/99, 129/00, 123/03, 82/06, 116/10, 25/12 and 45/13 - further BA. The BA was passed on 5. 10. 1994 and it was based on the Germany's Insolvency Act (Insolvenzordnung. (Bundesgesetzblatt, 1994., I, page. 2866; last change Bundesgesetzblatt, 2011., I, page. 2854. and the end of Force settlement, bankruptcy and liquidation act (NN br. 53/91 and 54/94 has represented a thorough change of the way bankruptcy process was conducted in Croatia. Each of the changes in the law was made in order to fix “acute problems” in practice and to enhance the system of the bankruptcy protection; this was supposed to be achieved through increase functionality, speeding up of the process and decrease of the bankruptcy cost. However since the time after of passing of the BA was time of economic prosperity, consequently there was no awareness of the fact that bankruptcy should have other functions except collections of debt from the debtors which are unable to pay. The whole process just leads to the liquidation of the companies. But, frequent financial crisis have forced a radical change in the bankruptcy legislature, considering that the bankruptcy procedure has not improved and that it was possible to undergo a bankruptcy procedure without a bankruptcy plan. There was a clear need for a new legislative framework, Financial conduct and pre-bankruptcy settlement act FCPS, (NN 108/12, 144/12, 81/13 and 112/13 (71/15 and 78/15. Although the passing of the FCPS in 2012. has significantly changed the bankruptcy procedure in Croatia, in its two year application a whole set of problems in terms of the meaning of the particular elements of the law which was tried to be solved with the passing of the new Bankruptcy act (NN 71/15. Since the „new“ BA has differently defined the rules and responsibilities of the trustee in bankruptcy, there was a

  10. Costs of Defaulting on Credit Card Debt Depend on the "Exit" Taken by Borrower Costs of Defaulting on Credit Card Debt Depend on the "Exit" Taken by Borrower Costs of Defaulting on Credit Card Debt Depend on the "Exit" Taken by Borrower

    OpenAIRE

    Sanchez, Juan M.

    2015-01-01

    When consumers can’t pay their credit card bills, they choose between delinquency and bankruptcy. A new economic model indicates that by changing the face value of delinquent debt, lenders can maximize repayment and make a difference in whether or not a household chooses bankruptcy.

  11. Haunted by Enron's ghost. National Century Financial Enterprises files for Chapter 11, leaving a string of broken healthcare chains and hospitals.

    Science.gov (United States)

    Taylor, Mark

    2002-11-25

    Some are calling it the Enron of the healthcare industry. Ryder trucks hauled possible evidence from embattled financier National Century Financial Enterprises during an FBI raid. NCFE filed for Chapter 11 bankruptcy protection last week, sending ripples through the industry and contributing to the bankruptcies of a string of national healthcare chains and at least six hospitals. PMID:12510558

  12. The Experimental Analysis of Assets Drain Problem of State Owned Enterprises of China%我国国有企业资产流失问题的经验研究

    Institute of Scientific and Technical Information of China (English)

    任海松; 叶龙

    2004-01-01

    The paper conducts experimental research of asset drain in the process of bankruptcy by analyzing the relevant data of state owned bankrupt enterprises, and re-explains the problem of asset drain in the process of state owned enterprise bankruptcy of China.

  13. OPTIONS-GAME ANALYSIS FOR FIRM WITH INSURED DEBT

    Institute of Scientific and Technical Information of China (English)

    Mei Zhengyang; Li Chulin

    2005-01-01

    The strategic model for insured bond of firm is a new model which is developed based on options pricing model and game theory. When firm's bond was insured against bankruptcy, some interesting results about endogenous bankruptcy and optimal capital structure are obtained.

  14. 13 CFR 107.1820 - Conditions affecting issuers of Preferred Securities and/or Participating Securities.

    Science.gov (United States)

    2010-01-01

    ... make a voluntary assignment for the benefit of creditors. (3) Bankruptcy. You begin any bankruptcy or.... (8) Failure to maintain diversity. You fail to maintain diversity between management and ownership as... majority of your board of directors; or (2) With respect to a Partnership Licensee, upon written notice,...

  15. A DECENT PROPOSAL

    OpenAIRE

    Luis Corchón; Carmen Herrero Blanco

    1995-01-01

    In this paper we explore the notion that players are decent, in the sense that their choices are bound by certain unwritten social rules. We apply this idea to two cases: bankruptcy and bargaining in exchange economies. We characterize the result that are generated by such a behavior in the cases of bankruptcy and in two person bargaining in exchange economies.

  16. Costs and Recovery Rates in the Dutch Liquidation-Based

    NARCIS (Netherlands)

    Couwenberg, Oscar; de Jong, Abe

    2007-01-01

    Abstract We present evidence on the efficiency of the resolution of financial distress in bankruptcy in The Netherlands. We employ a unique data set based on the files of the trustees and court offices, which includes the characteristics of the firms before and in the bankruptcy procedures, the deta

  17. "The Certainty of Hopelessness": Are Courts too Harsh toward Bankrupt Student Loan Debtors?

    Science.gov (United States)

    Fossey, Richard

    1997-01-01

    In most cases, individuals filing for bankruptcy to discharge student loans are those who encountered difficult life circumstances, not middle-class college graduates who refused to pay for their education. Many courts have interpreted the Bankruptcy Code's "undue hardship" provisions too harshly and without compassion. (70 footnotes) (MLF)

  18. 28 CFR 58.25 - Qualifications for approval as providers of a personal financial management instructional course.

    Science.gov (United States)

    2010-07-01

    ... DEPARTMENT OF JUSTICE (CONTINUED) REGULATIONS RELATING TO THE BANKRUPTCY REFORM ACTS OF 1978 AND 1994 § 58.25... provider shall: (i) Require each debtor student to provide proof of identification, to provide his/her bankruptcy case number, and to sign in and sign out of the course; (ii) Conduct the course for a minimum...

  19. Elter v. Great Lakes Higher Education Corporation: State Agencies That Grant Educational Loans May Discriminate against Student Bankrupts Who Default on Prior Educational Loans.

    Science.gov (United States)

    Lake, John F.; Pedulla, Maria A.

    1990-01-01

    Discussion of a ruling allowing state agencies to deny new educational loans to students with previous loans discharged in bankruptcy looks at the intent behind the Bankruptcy Code, specifically concerning the nature of educational loans and the "fresh start" policy. Potential conflicts between the state and federal statute is also discussed. (MSE)

  20. 78 FR 26397 - Agency Information Collection Activities; Collection; Comments Requested: Application for...

    Science.gov (United States)

    2013-05-06

    ... Primary: Individuals who wish to offer as a brief abstract: instructional courses to student debtors concerning personal financial management. Other: None. Congress passed a bankruptcy law that requires individuals who file for bankruptcy to complete an approved personal financial management instructional...

  1. 77 FR 32671 - Agency Information Collection Activities: Collection; Comments Requested; Application for...

    Science.gov (United States)

    2012-06-01

    ..., as well as a to offer instructional courses brief abstract. to student debtors concerning personal financial management. Other: None. Congress passed a bankruptcy law that requires individuals who file for bankruptcy to complete an approved personal financial management instructional course as a condition...

  2. Pojištění cestovních kanceláří proti úpadku

    OpenAIRE

    Kvasničáková, Markéta

    2009-01-01

    Bachelor thesis "Insurance against bankruptcy of travel agencies" deals with insurance guarantees. It defines the compulsory insurance of travel agencies through the act no. 159/1999 Sb. It also focuses on institutions providing this insurance, arranging insurance into practice, describing the situation of travel agency in bankruptcy. Finally, it evaluates the general credibility of travel agencies.

  3. Chronique de jurisprudence suisse (1996-2004)

    DEFF Research Database (Denmark)

    Cavaleri, Sylvie Cécile

    The article reviews case law on the Swiss Statute on Private International Law from 1996 to 2004. Sylvie Cavaleri's contribution concerns provisions on insolvency and bankruptcy.......The article reviews case law on the Swiss Statute on Private International Law from 1996 to 2004. Sylvie Cavaleri's contribution concerns provisions on insolvency and bankruptcy....

  4. The Albanian legal framework on non-discrimination and gender equality in employment relationships

    Directory of Open Access Journals (Sweden)

    Ilir Rusi

    2012-02-01

    Full Text Available The aim of this article is to present the concept of bankruptcy as a legal judicial procedure to be followed in case that the legal or natural person becomes insolvent. The paper is focused on the meaning of bankruptcy, the subjects of bankruptcy proceedings, causes for the opening of this proceeding, the competent court and its decision according to the law no.8901, dated 23.05.2002 “On bankruptcy” published in official Journal nr.31/2002. These article deals also with the organs of bankruptcy proceedings, administrator, meeting of creditors and methods of the conclusion of bankruptcy proceedings. A brief description of debtor’s possibilities during bankruptcy proceedings is given also in article. It deals with debtor’s closeout, rehabilitation/reorganization of the company and debtor’s liquidation. However, it should be noted that the bankruptcy procedure is a procedure not very widespread in our country, that due to the small number of cases before our courts. It also has to do with the fact that subjects rarely addressed the court.

  5. The Evolution of the Constitutional System in Albania

    Directory of Open Access Journals (Sweden)

    Evis Alimehmeti

    2011-01-01

    Full Text Available The aim of this article is to present the concept of bankruptcy as a legal judicial procedure to be followed in case that the legal or natural person becomes insolvent. The paper is focused on the meaning of bankruptcy, the subjects of bankruptcy proceedings, causes for the opening of this proceeding, the competent court and its decision according to the law no.8901, dated 23.05.2002 “On bankruptcy” published in official Journal nr.31/2002. These article deals also with the organs of bankruptcy proceedings, administrator, meeting of creditors and methods of the conclusion of bankruptcy proceedings. A brief description of debtor’s possibilities during bankruptcy proceedings is given also in article. It deals with debtor’s closeout, rehabilitation/reorganization of the company and debtor’s liquidation. However, it should be noted that the bankruptcy procedure is a procedure not very widespread in our country, that due to the small number of cases before our courts. It also has to do with the fact that subjects rarely addressed the court.

  6. DNA Development and its Importance

    Directory of Open Access Journals (Sweden)

    Artur Gaxhi

    2011-07-01

    Full Text Available The aim of this article is to present the concept of bankruptcy as a legal judicial procedure to be followed in case that the legal or natural person becomes insolvent. The paper is focused on the meaning of bankruptcy, the subjects of bankruptcy proceedings, causes for the opening of this proceeding, the competent court and its decision according to the law no.8901, dated 23.05.2002 “On bankruptcy” published in official Journal nr.31/2002. These article deals also with the organs of bankruptcy proceedings, administrator, meeting of creditors and methods of the conclusion of bankruptcy proceedings. A brief description of debtor’s possibilities during bankruptcy proceedings is given also in article. It deals with debtor’s closeout, rehabilitation/reorganization of the company and debtor’s liquidation. However, it should be noted that the bankruptcy procedure is a procedure not very widespread in our country, that due to the small number of cases before our courts. It also has to do with the fact that subjects rarely addressed the court.

  7. Management of the taxation on tourism operators, an important component of revenues and investments in the tourism sector

    OpenAIRE

    Ylvije Borici-Kraja; Elez Osmani

    2012-01-01

    The aim of this article is to present the concept of bankruptcy as a legal judicial procedure to be followed in case that the legal or natural person becomes insolvent. The paper is focused on the meaning of bankruptcy, the subjects of bankruptcy proceedings, causes for the opening of this proceeding, the competent court and its decision according to the law no.8901, dated 23.05.2002 “On bankruptcy” published in official Journal nr.31/2002. These article deals also with the organs of bankrupt...

  8. From subprime mortgages to subprime credit cards

    OpenAIRE

    Margo Anderson

    2008-01-01

    Since the 2005 changes to bankruptcy law made subprime products safer for credit card companies, they are promoting more cards to consumers with poor credit. High up-front fees and penalties may call for consumer caution.

  9. Asian Banks: Leading the Way to Recovery

    Institute of Scientific and Technical Information of China (English)

    2010-01-01

    @@ The global financial crisis has rocked the American and European Union banking system leaving many Western banks teetering on the verge of bankruptcy.But in the East,Asian banks have fared well so far.

  10. 77 FR 1114 - Self-Regulatory Organizations; Chicago Mercantile Exchange, Inc.; Notice of Filing and Order...

    Science.gov (United States)

    2012-01-09

    ... moral turpitude; and/or 3. any filing of a bankruptcy petition or insolvency, receivership or equivalent... principle-based regulations adopted by the CFTC that establish certain standards of compliance...

  11. Insolvenční právo v možném světle konkursní judikatury

    Czech Academy of Sciences Publication Activity Database

    Havel, Bohumil

    Olomouc: Iuridicum Olomoucense o.p.s, 2012, s. 103-109 ISBN 978-80-87382-26-4 Institutional support: RVO:68378122 Keywords : insolvency law * Act on Insolvency * bankruptcy trustee Subject RIV: AG - Legal Sciences

  12. New York Polytechnic: Tiffany of Subway Schools

    Science.gov (United States)

    Bard, Bernard

    1975-01-01

    Through intensive student recruitment, faculty planning, new undergraduate programs and acquisitioning of research and endowment money PINY, previously close to bankruptcy, is now approaching its goal of becoming the great technological university of New York. (KE)

  13. Bloomfield College.

    Science.gov (United States)

    Allshouse, Merle F.

    1986-01-01

    Bloomfield's declaration of financial exigency, Chapter XI bankruptcy reorganization, and shift to a primary emphasis on recruiting nontraditional students enabled it to survive and emerge from its status as an invisible institution. (MSE)

  14. PROBLEMS OF OPERATING, INVESTING AND FINANCIAL RESTRUCTURING OF COMPANIES

    OpenAIRE

    Gavrilova M. A.

    2013-01-01

    This article considers the problems, principles and features of the operating, investing and financial restructuring under the Law of the Russian Federation on insolvency (bankruptcy). Suggestions on improving restructuring procedures were given in this article as well

  15. Sequential sharing rules for river sharing problems

    OpenAIRE

    Ansink, Erik; Weikard, Hans-Peter

    2009-01-01

    We analyse the redistribution of a resource amongst agents who have claims to the resource and who are ordered linearly. A well known example of this particular situation is the river sharing problem. We exploit the linear order of agents to transform the river sharing problem to a sequence of two-agent river sharing problems. These reduced problems are mathematically equivalent to bankruptcy problems and can therefore be solved using any bankruptcy rule. Our proposed class of solutions, that...

  16. Application of Neural Network in Prediction of Financial Viability

    OpenAIRE

    Roli Pradhan; K. K. Pathak; V.P. Singh

    2011-01-01

    Bankruptcy prediction is very important for all the organization since it affects the economy and causes a rise in many social problems with incremental high costs. There are large number of techniques that have been developed to predict the bankruptcy of firms, which helps the decision makers such as investors and financial analysts to plan in accordance to the financial position of the firm regarding the terms of credit as well as the recovery of the lent amount. The Altman Model for predic...

  17. District heating as a secure heat supply - A question of regulation

    OpenAIRE

    Palm, Jenny

    2007-01-01

    The trend in the district heating industry is toward increased privatization and openness to competition, which bring with them other phenomena associated with civil law, such as bankruptcies. Vingåker was one of six Swedish municipalities whose district heating companies went bankrupt in 2004. The bankruptcy caused major disruptions in Vingåker, not least as a result of the unregulated legal framework that has long prevailed in the area of district heating, where there is essentially no cons...

  18. Trustee workbook 3. Effective governance after Enron and AHERF.

    Science.gov (United States)

    Orlikoff, James E; Totten, Mary K

    2002-01-01

    High profile business failures such as Enron and AHERF have raised the public's consciousness about the governing board's crucial role in ensuring sound, ethical business practices. AHERF (the Allegheny Health, Education, and Research Foundation in Philadelphia) was the largest not-for-profit health care bankruptcy in history and has generated many lawsuits against the AHERF boards and individual trustees. The Enron bankruptcy will certainly result in lawsuits against its board and directors and has embarrassed board members profoundly. PMID:12141058

  19. Prediction of Financial Distress -A Case Study of Indian Companies

    OpenAIRE

    Amalendu Bhunia; Sri Islam Uddin Khan; Somnath Mukhuti

    2011-01-01

    Financial distress is of crucial importance in financial management especially in the case of competitive environment. Failure is not an impulsive outcome and it grows constantly in stages. A spontaneous protective effort could be accommodated if the company is anticipated to be proceeding in the direction of potential bankruptcy and this can help alleviate the financial distress to all investors and decrease the costs of bankruptcy. This study extends a failure prediction model for Indian co...

  20. Neural Networks and their application in the fields of corporate finance

    OpenAIRE

    Severin, Eric

    2008-01-01

    This article deals with the usefulness of neuronal networks in the area of corporate finance. Firstly, we highlight the initial applications of neural networks. One can distinguish two main types: layer networks and self organizing maps. As Altman al. (1994) underlined, the use of layer networks has improved the reclassifying rate in models of bankruptcy forecasting. These first applications improved bankruptcy forecasting by showing a relationship between capital structure and corporate perf...

  1. Predicting default of a small business using different definitions of financial distress

    OpenAIRE

    S-M Lin; Ansell, J; G Andreeva

    2012-01-01

    The paper introduces a number of risk-rating models for UK small businesses applying an accounting-based approach, which uses financial ratios to predict corporate bankruptcy. An enhancement to these models is considered through features typical to retail credit risk modelling. A common problem of default prediction consists in the relatively small number of bankruptcies or real defaults available for model-building. In order to expand the ‘default’ group beyond bankrupt companies, the paper ...

  2. PROFITABILITY EVALUATION METHODS – A STRATEGY FOR ROMANIAN COMPANIES TO AVOID INSOLVENCY.

    OpenAIRE

    SABĂU CĂTĂLIN

    2015-01-01

    Addressing economic strategies for determining the stability and financial position of the companies has become a very topical issue in recent years due to the financial crisis manifested worlwide in 2008 and which led to the start of insolvency proceedings for a considerable number of Romanian companies , which often resulted in bankruptcy for the firms concerned. Beside the international macroeconomic context, another issue that we consider essential and which led to the bankruptcy of Roman...

  3. Entrepreneurial Learning : Entrepreneurial response to firm failure

    OpenAIRE

    Skärström, Cajsa-Malin; Wallstedt, Erik; Wennerström, Linus

    2008-01-01

    There is a lot of research conducted in the field of general entrepreneurship, entrepreneurial learning, and entrepreneurial innovation. However, as Jason Cope (2003) came across during his research, there is little to none research made within the field of entrepreneurial learning from failure, especially from bankruptcy. The purpose of this thesis is to explore if it is possible forentrepreneurs to obtain “higher-level learning” from a bankruptcy. The research concerns whether or not entrep...

  4. Příčiny bankrotu společnosti Lehman Brothers

    OpenAIRE

    Spěváková, Ilona

    2012-01-01

    In the first part of the bachelor thesis "Causes of Lehman Brothers Bankruptcy" there are described causes of the biggest bankruptcy in the United States of America, in relation to global economic crisis. Whether it was adoption of Community Reinvestment Act, cancelation of Glass-Steagall law, forthcoming deregulation, or securitization? In the second part there is mentioned moment, when the system began to fall apart and when large companies were facing liquidity crisis, which was fatal for ...

  5. The failure resolution of Lehman Brothers

    OpenAIRE

    Fleming, Michael J.; Sarkar, Asani

    2013-01-01

    This study examines the resolution of Lehman Brothers Holdings Inc. in the U.S. Bankruptcy Court in order to clarify the sources of complexity in its resolution and to inform the debate on appropriate resolution mechanisms for financial institutions. The authors focus on the settlement of Lehman’s creditor and counterparty claims, especially those relating to over-the-counter (OTC) derivatives, where much of the complexity of Lehman’s bankruptcy resolution was rooted. They find that creditors...

  6. Le règlement des défauts sur le marché des credit default swaps : le cas de Lehman Brothers

    OpenAIRE

    Virginie Coudert; Mathieu Gex

    2010-01-01

    [eng] The Settlement of Lehman Brothers Bankruptcy on the Credit Default Swap Market Lehman Brothers bankruptcy created important risks for the credit default swap (CDS) market. Firstly, Lehman Brothers was a key participant of the CDS market, as buyer and seller of a large number of contracts. The counterparty risk, which had been neglected until then, suddenly became a major source of concern. The entanglement of positions on this OTC market has drastically increased the counterparty risk. ...

  7. Income statements "by nature" and analysis of company performance : an application of US airlines companies

    OpenAIRE

    Stolowy, Hervé; Ding, Yuan; Baker, C. Richard

    2003-01-01

    Since September 11, 2001; and during the ensuing economic slowdown, U.S airline companies have experienced significant financial difficulties, including bankruptcies and near bankruptcies on the part of several major carriers. In an economic setting where U.S. airlines are struggling to achieve or maintain profitability, it is important for accountants, auditors and financial analysts to be able to analyze the relative performance of airline companies. In the airline industry, income statemen...

  8. Optimization of dividend and reinsurance strategies under ruin probability constraint

    OpenAIRE

    Zongxia Liang; Jicheng Yao

    2010-01-01

    This paper considers nonlinear regular-singular stochastic optimal control of large insurance company. The company controls the reinsurance rate and dividend payout process to maximize the expected present value of the dividend pay-outs until the time of bankruptcy. However, if the optimal dividend barrier is too low to be acceptable, it will make the company result in bankruptcy soon. Moreover, although risk and return should be highly correlated, over-risking is not a good recipe for high r...

  9. Stressed, not frozen: The federal funds market in the financial crisis

    OpenAIRE

    Afonso, Gara; Kovner, Anna; Schoar, Antoinette

    2010-01-01

    This paper examines the impact of the financial crisis of 2008, specifically the bankruptcy of Lehman Brothers, on the federal funds market. Rather than a complete collapse of lending in the presence of a market-wide shock, we see that banks became more restrictive in their choice of counterparties. Following the Lehman bankruptcy, we find that amounts and spreads became more sensitive to a borrowing bank's characteristics. While the market did not contract dramatically, lending rates increas...

  10. Faut-il adopter un système pro-créanciers de défaillances? Une revue de la littérature

    OpenAIRE

    Gilles Recasens

    2003-01-01

    Bankruptcy choices condition, i) the efficiency of liquidation or reorganization decisions, ii) the incen-tives delivered to the debtor-in-place and its creditors. On the one hand, there is no incompatibility between a pro-creditors system and the possibility to reach informal agreements and a high proportion of firms emerging from bankruptcy as going concerns. On the other hand, credit rationing is less severe in such systems. Finally, offering a higher protection for creditors interests, pr...

  11. Begrenzung des unternehmerischen Risikos im Insolvenzverfahren

    OpenAIRE

    Gotthardt, Justus

    2014-01-01

    Eine Behandlung der wesentlichen Normen des Insolvenz- und Gesellschaftsrechts aus der Perspektive des GmbH-Gesellschafters. Dabei wird ein besonderes Augenmerk auf die Gestaltungsmöglichen und Risiken für den Gesellschafter im Insolvenzverfahren gelegt. This thesis discusses German company and bankruptcy law from a shareholders’ perspective. It focusses especially on the opportunities and risks associated with bankruptcy proceedings under German law.

  12. Finanční analýza MESIT ronex, spol. s.r.o.

    OpenAIRE

    Pačka, Radoslav

    2010-01-01

    The aim of this bachelor thesis is to analyse financial situation of the MESIT ronex, Co., Ltd in years 2006 to 2009. Financial analysis is divided into two main parts. The theoretical part explains the main terms of financial analysis and describes the methods in which is the financial analysis done. The practical part consists of horizontal and vertical analysis,analysis of profitability ratios, liquidity ratios, activity ratios and leverage ratios. Also bankruptcy and non-bankruptcy models...

  13. Prediktioner och förklaringsmodeller för konkurser i aktiebolag : en studie av tre svenska aktiebolag i konkurs

    OpenAIRE

    Svanberg, Tim

    2007-01-01

    Title: Predictions and explanation models for bankruptcy in stock-companies – A study of three failed Swedish companies Author: Tim Svanberg Supervisor: Emil Numminen Department: School of Management, Blekinge Institute of technology Course: Bachelor’s thesis in business administration, 10 credits Purpose: The purpose of the thesis is to find explanation for bankruptcy with the help of prediction models. The purpose is also to add explanation by using Behavioral analysis Method: Quantitative ...

  14. Кризата – извор на претприемнички можности: адаптација на (маркетинг) стратегијата кон новите пазарни услови

    OpenAIRE

    Temjanovski, Riste; Marjanova Jovanov, Tamara

    2012-01-01

    The recession leads to an increase in the number of closed businesses and increase in the participation of bankruptcy within these closures. The closure of companies creates social costs, especially in case of bankruptcy, but on the other hand taking into account that first least efficient enterprises fail, it may have positive implications, i.e. the death of these companies creates an increase in the average productivity of labor and free space in the market for new companies or new activiti...

  15. Valuation of the Firm's Liabilities when Equity Holders are also Creditors

    OpenAIRE

    Marco Realdon

    2006-01-01

    This paper presents a tractable structural model whereby controlling equity holders are also among the creditors of the firm. As the firm approaches distress, equity holders can depauperate the firm and expropriate other creditors by repaying their credit before bankruptcy. The bankruptcy court's right to revoke such repayment protects arm's length creditors, reduces the cost of borrowing and induces equity holders to anticipate repayment of their credit. Equity holders decide repayment neith...

  16. Gesamtwirtschaftliche Bestimmungsgründe der Insolvenzentwicklung in Deutschland

    OpenAIRE

    Lehment, Harmen; Blevins, Christopher; Sjøvoll, Espen

    1997-01-01

    In this paper we empirically analyze the macroeconomic detenninants of insolvencies in Germany since 1970. It is shown that the growth rate of insolvencies can be explained by changes in the rate of return to capital and by preceding changes in the money market interest rate and the inflation rate, as well as by lagged effects of preceding changes in bankruptcies. We also find that Gennan unification contributed to a rise of bankruptcy rates both in West Gennany and in East Germany.

  17. 未履行或未完全履行的双务合同在破产程序中的命运——德国支付不能法第103条%The Treatment to the Bilateral Contract Being Undischarged or Incomplete Discharged during the Bankruptcy Procedures——The 103rd Item of German Insolvency Statue

    Institute of Scientific and Technical Information of China (English)

    丁晓春

    2008-01-01

    破产程序中如何对待未履行或未完全履行的双务合同是破产程序的重要问题.破产程序的开启对合同履行产生怎样的效力,德国司法判决和学说经过长期的发展逐渐达成共识.1999年1月生效的德国支付不能法将破产管理人的选择权清晰地写进第103条,明确了合同双方履行请求权在破产程序中的命运.

  18. 論智慧財產權證券化的法律問題―以證券化法、擔保設定及破產問題為核心 Legal Issue in IP Securitization: Securitization Law, Guarantee Setting and Bankruptcy

    OpenAIRE

    王偉霖 Wei-Lin Wang

    2013-01-01

    智慧財產權證券化係承襲資產證券化之基本架構,肇始於1960 年代美國房地產市場,一直到1997 年始首度運用至智慧財產權領域。若從資產證券化市場過去榮景觀之,智慧財產權證券或可成為重要的金融商品及成為中小企業有力融資之管道。然因基礎資產特性所限(智慧財產價值不易確定、不易管理等因素),智慧財產權證券化至今仍有某些困難尚待克服。主要原因之一乃在於智慧財產權證券化現金流量之可預測性及穩定性較不易掌控,導致投資人寧可選擇其他商品。因此,從商業面及法律面強化現金流量之訂定 性與增加其可預測性為推動智慧財產權證券化之重要條件。本文以此觀點探討智慧財產權證券化的幾個法律問題,包括是否制定專法、目前智慧財產權設定擔保及登記制度有無改進空間,以及權利人破產時破產管理人之處置對於證券化之影響等,以比較法的方式探討智慧財產權證券化較成熟的美國市場之相關規定,以為臺灣的相關法規提出建議,希冀對於臺灣智慧財產權證券化的推動有所助益,並改善國內企業之籌資管道。 The word “Intellectual property (IP) securitization” was originated...

  19. VISIÓN CRÍTICA DESDE EL ANÁLISIS ECONÓMICO DEL DERECHO AL SISTEMA DE VERIFICACIÓN DE CRÉDITOS Y REALIZACIÓN DE ACTIVOS DE LA LEY DE QUIEBRAS CHILENA A CRITICAL VIEW, FROM THE ECONOMIC ANALYSIS OF LAW, TO CLAIM'S VERIFICATION AND ADMISSION SYSTEM, AND LIQUIDATION OF ASSETS, IN CHILEAN BANKRUPTCY LAW

    OpenAIRE

    Raúl Núñez Ojeda; Nicolás Carrasco Delgado; Francisco Ortiz Rojo

    2012-01-01

    En el presente artículo, los autores sostienen que, desde la perspectiva del análisis económico del derecho, las etapas de verificación de créditos y realización de activos, en el marco de una quiebra, deben perseguir como objetivo normativo, una mayor recuperación de créditos. Para tal efecto, los autores describen dichas etapas, e indican sus deficiencias, proponiendo ciertas pautas de reforma enmarcadas en el análisis económico del derecho y el derecho comparado.In this article, the author...

  20. Analisis Opini Auditor Sebagai Sinyal Kepailitan Suatu Perusahaan: Tinjauan Terhadap Perlunya Kode Etik Syariah Akuntan Publik

    Directory of Open Access Journals (Sweden)

    Sugiyarti Fatma Laela

    2014-03-01

    Full Text Available Auditor is a professional who has credibility in auditing financial report and company’s activities. This research’s purpose is to figure out; does the company’s bankruptcy can be predicted from the auditor’s opinion. The data used in this research are taken from 33 companies which have announced to bankruptcy by state justice of Central Jakarta, and the recent three years auditor’s opinions before the companies’ bankruptcy. After the data have been analyzed with T-test and Friedman test, it goes to the result that there is no significant different between the whole auditor’s opinions in last three years before the companies’ bankruptcy. This research concludes that the bankruptcy cannot be predicted from the auditor’s opinion. Theoretically, the auditor’s opinion can be a tool in predicting the company’s bankruptcy. The deviation of auditor’s ethical codes causes to such this matter happen. Based on that fact, the shariah based ethical codes for auditor is needed. After deep learning from many literatures, the writer formulates shariah ethical codes for auditor which divides into two; relationship between Allah and Human, it performed with the faith (Iman, and the other one is relationship among all humans, it involves the objectivity, independency, professionalism, and integrity.JEL Classification : M40, M42Keywords : auditor, auditor’s opinion, Islamic auditor’s ethical codes

  1. The optimization of structure of capital firm «Ukrtelecom»

    Directory of Open Access Journals (Sweden)

    M.I. Yaremenko

    2015-03-01

    Full Text Available In the paper the optimization of capital enterprises in the economic crisis, namely the method of Modigliani–Miller. This is especially true because Ukraine is in an economic and financial crisis whose impact on businesses need to level through internal resources and companies with state tax support. Established that the values of financial leverage marginal tax benefits equal marginal cost of bankruptcy, in a model of Modigliani–Miller, taking into account taxes and compromise approach to the capital levels of financial leverage, which costs bankruptcy materialize in cash. Bankruptcy costs depend on the probability of bankruptcy and ruin the company and the value of the costs associated with it. With small loans and low probability of ruin and bankruptcy costs are low. Advantages of taxation lead to higher market price of the capital of the enterprise. Using the tools of financial and operational management, the owners of the firm's capital can allocate losses so that most of them will be in the creditors.

  2. ANALISIS POTENSI KEBANGKRUTAN KAFE DAN RESTO DI KOTA MALANG DENGAN MENGGUNAKAN METODE ZMIJEWSKI

    Directory of Open Access Journals (Sweden)

    Rony Joyo Negoro Octavianus

    2016-02-01

    Full Text Available This research is conducted to evaluate the potential of bankruptcy related to cafes and restaurant in Malang city by applying Zmijewski method. The sampling method is using non-probability and also criteria sampling. The criteria of sampling method is cafes and restaurants that have been running for three years, owned the legal permit, and having the last three years financial reports, and the owner has agreed to permit the research. The X-Score resulted from seven cafes and restaurants that have been evaluated are under zero, which means they are financially healthy. However, there is a cafe and restaurant that has the probability of facing bankruptcy, but the score is still under the cut off value. The most contributing variable to be the cause of bankruptcy is the return on assets. Cafes and restaurants in Malang city will always be in a financially healthy condition if they have the ability to manage their assets and produce more profits.

  3. Corporate Governance and Corporate Creditworthiness

    Directory of Open Access Journals (Sweden)

    Dror Parnes

    2011-12-01

    Full Text Available We examine the relation between corporate governance and bankruptcy risk as an underlying force affecting a bond’s yield. The level of corporate governance is captured by the G-index, along with the explicit groups of governance provisions. We estimate bankruptcy risk by Z-score, by cash-flow-score, by O-score, through Merton structural model default probabilities, and by S&P credit ratings. After addressing endogeneity and while controlling for firm-specific factors, based on the four objective methodologies we find that corporate governance is inversely related to bankruptcy risk. Yet, rating agencies take a mixed approach towards this association likely because of the conflicting impact of different governance provisions.

  4. Information dissipation as an early-warning signal for the Lehman Brothers collapse in financial time series

    Science.gov (United States)

    Quax, Rick; Kandhai, Drona; Sloot, Peter M. A.

    2013-05-01

    In financial markets, participants locally optimize their profit which can result in a globally unstable state leading to a catastrophic change. The largest crash in the past decades is the bankruptcy of Lehman Brothers which was followed by a trust-based crisis between banks due to high-risk trading in complex products. We introduce information dissipation length (IDL) as a leading indicator of global instability of dynamical systems based on the transmission of Shannon information, and apply it to the time series of USD and EUR interest rate swaps (IRS). We find in both markets that the IDL steadily increases toward the bankruptcy, then peaks at the time of bankruptcy, and decreases afterwards. Previously introduced indicators such as `critical slowing down' do not provide a clear leading indicator. Our results suggest that the IDL may be used as an early-warning signal for critical transitions even in the absence of a predictive model.

  5. BASIC THEORETICAL APPROACHES TO ASPECTS OF FORECASTING FINANCIAL CONDITION OF AGRICULTURAL ORGANIZATIONS

    Directory of Open Access Journals (Sweden)

    Zhminko N. S.

    2014-03-01

    Full Text Available In today's economic conditions, a bankruptcy prediction is performed using a methodological analysis apparatus of economic and financial condition of the entities. Methodical provision of financial analysis is a tool that is necessary for the most effective management of financial and economic activities of the organization, industry, and region. The task of predicting bankruptcy as an independent problem originated in developed countries after the Second World War. Our transition to a market economy has made an actual assessment of the financial condition of businesses. As a result, in practice, there are many financial analyses of foreign and domestic procedures. The problem of determining signs of insolvency of the enterprise is very complex. Forecasting of bankruptcy can be made with using various techniques, approaches and methods

  6. Should utilities go bankrupt

    International Nuclear Information System (INIS)

    A new study prepared by Touche Ross for Suffolk County, NY concludes that ratepayers will pay less than one tenth for a reorganization under Chapter 11 of the Bankruptcy Act than for a bailout to cover the unfinished Shoreham nuclea r plant. The study also found public power to be a better option for ratepayers than either bailout or bankruptcy, and may even be a better solution for investors. Unlike the situation with General Public Utilities, which has no way to write off Three Mile Island, there is a precedent for public condemnation and buyout for the Long Island Company. Uncertainties about the results of a bankruptcy will continue until a utility is actually forced to reorganize, but analysts differ on whether state commission can keep abandoned plants out of rates. 1 figure

  7. Conséquence de la crise financière ou crise d’une forme de capitalisme : la faillite des Big Three Consequence of the financial crisis or crisis of a type of capitalism: The bankruptcy of the Big Three Consecuencia de la crisis financiera o crisis de una forma de capitalismo : la quiebra de las « Big Three »

    Directory of Open Access Journals (Sweden)

    Michel Freyssenet

    2011-06-01

    Full Text Available Les constructeurs automobiles américains n’ont pas été les victimes malheureuses de la crise financière qui les aurait empêchés de se redresser à temps. L’aggravation des inégalités sociales à partir des années 1980 a fait émerger notamment une demande de véhicules onéreux, les light-trucks. Elle s’est révélée très rentable pour GM, Ford et Chrysler et leur a permis de prospérer tout au long des années 1990 malgré la concurrence des constructeurs japonais. L’externalisation d’une part croissante de la production et la diversification dans les services devait en outre renforcer la profitabilité. L’éclatement de la bulle internet en 2000 révéla le mirage de la « nouvelle économie » et l’externalisation, combinée aux engagements de l’entreprise pour assurer les pensions de retraite, entraîna une hausse inexorable des coûts salariaux des Big Three et une baisse des profits dès 2005. L’accroissement de l’endettement des ménages maintint artificiellement les ventes jusqu’au dénouement final. Les Big Three ont directement contribué à ce que la crise advienne, en adhérant à la « nouvelle économie » et en mettant en œuvre ses recettes. La question est de savoir s’ils avaient une alternative.American carmakers were not unfortunate victims of some financial crisis that got in the way of their recovery. The aggravation of the social inequalities in United States as from the years 1980 gave rise to a demand for expensive vehicles, the light-trucks. It appeared very profitable for GM, Ford and Chrysler and their allowed to thrive, in spite of the competition of the Japanese constructors. The increasing outsourcing of the production and the diversification in the services were to reinforce profitability. The bursting of Internet bubble in 2000 revealed the mirage of the “new economy”. The outsourcing combined with engagements of the company to ensure the retirement pensions involved an inexorable rise of the salary costs of Big Three and a fall of the profits since 2005. The continuation of the running into debt of the households artificially maintained the sales until the final outcome. The Big Three were direct contributors to their own problems, first and foremost through their adherence to “new economy” precepts and efforts to implement its recipes. The question is whether they ever had an alternative.Los constructores de automóviles americanos no han sido las víctimas desgraciadas de una crisis financiera que les habría impedido de recuperarse a tiempo. La agravación de las desigualdades sociales a partir de los años 1980 hizo emerger una demanda de vehículos onerosos, los light-trucks. Ella se reveló muy rentable para GM, Ford y Chrysler y les ha permitido prosperar a los largo de los años 1990 a pesar de la competencia de los constructores japoneses.  La externalización de una parte creciente de la producción y la diversificación en los servicios debía por otra parte fortalecer la rentabilidad. La explosión de la burbuja Internet en 2000 reveló el milagro de la « nueva economía » y la externalización, combinada con compromisos de las empresas para asegurar pensiones y jubilaciones del personal despedido, que arrastra un incremento inexorable de los costos salariales de las Big Three y la disminución de las tasas de ganancia desde 2005. El incremento del endeudamiento de las familias mantiene artificialmente el nivel de las ventas, hasta el momento del desenlace final. Los Big Three han contribuido directamente a que la crisis arrive, al adherir a la « nueva economía » y poniendo en práctica sus recetas. La cuestión que se plantea es la de saber si ellas tenían otra alternativa.

  8. Surviving death

    DEFF Research Database (Denmark)

    Gerstroem, Anna

    2013-01-01

    such phases. The aim of this paper is to explore how an organization’s identity is re-constructed after organizational death. Based on interviews with members of a bankrupted bank who narrate their bankruptcy experiences, the paper explores how legacy organizational identity is constructed after...... organizational death. The paper shows how members draw on their legacy organizational identity to justify their past interpretations and responses to the intensifying bankruptcy threats. Members refer to their firm belief in the bank’s solid and robust identity claim when they explain how they disregarded...

  9. Finanční analýza společnosti Severočeská energetika, a.s.

    OpenAIRE

    Urban, Pavel

    2011-01-01

    The aim of the thesis is to generally approach the financial analysis with focus on the models of summary assessment of a company (i.e. bankruptcy models and creditworthy models). In the practical part the financial analysis of the company Severočeská energetika, a.s., was performed for the period 2001 - 2006 by means of horizontal and vertical analysis of accounting statements, by means of ratio indicators and bankruptcy and creditworthy models including comparison of the results of the indi...

  10. Why Are Bank Failures Special? Lessons from U.S. Financial History

    OpenAIRE

    Ronnie J. Phillips

    2008-01-01

    In the U.S., corporate bankruptcies generally go through the court system for resolution, whereas bank failures are resolved by bank regulatory agencies. The goal of corporate bankruptcy is to maximize the value of the firm as a "going concern" in liquidation to the shareholders. In a bank failure, the goal is to minimize the loss to the FDIC. The treatment of bank failures is attributed to their "special" nature that is related to their role in providing a convenient means of payment and the...

  11. GPU is in great jeopardy: PUC report details GPU's deteriorating financial position

    International Nuclear Information System (INIS)

    The General Public Utilities Corporation (GPU) faces bankruptcy or reorganization without Federal financial help and rate relief for the cleanup at Three Mile Island, but neither the Administration nor the Pennsylvania Public Utilities Commission is inclined to help. Bankruptcy will leave GPU's customers without power and will leave Unit 2 contaminated, making it unlikely that the courts will permit dissolution. The Nuclear Regulatory Commission's permission to restore Unit 1 could make financial recovery possible. Its reluctance to do so and its use of the psychological stress factor can be interpreted as applying a double standard to Babcock and Wilcox reactors

  12. Pertanggungjawaban Direksi Terhadap Kepailitan Perseroan Terbatas (Studi Terhadap Putusan Mahkamah Agung No. 05/PAILIT/2012/PN/NIAGA.SMG)

    OpenAIRE

    Riska, Fenty

    2016-01-01

    Bankruptcy is a public confiscation upon the Bankrupt Debtor’s whole property which management and settlement are carried out by a Curator under the direction of the Supervisory Judge. The main purpose of bankruptcy declaration is to make shares among creditors upon the bankrupt debtor’s property by the curator. Debtors that have two or more creditors and are unable to pay at least one of the creditors its debts which past due and are collectable, are declared to be bankrupt by the C...

  13. PREDICTIVE ANALYSIS SOFTWARE FOR MODELING THE ALTMAN Z-SCORE FINANCIAL DISTRESS STATUS OF COMPANIES

    Directory of Open Access Journals (Sweden)

    ILIE RĂSCOLEAN

    2012-10-01

    Full Text Available Literature shows some bankruptcy methods for determining the financial distress status of companies and based on this information we chosen Altman statistical model because it has been used a lot in the past and like that it has become a benchmark for other methods. Based on this financial analysis flowchart, programming software was developed that allows the calculation and determination of the bankruptcy probability for a certain rate of failure Z-score, corresponding to a given interval that is equal to the ratio of the number of bankrupt companies and the total number of companies (bankrupt and healthy interval.

  14. Lehman Brothers - A Casualty of Constructive Ambiguity?

    OpenAIRE

    Flaaten, Gerhard

    2009-01-01

    This thesis seeks to explain the US Government's role in the bankruptcy of Lehman Brothers in September 2008. It asks why Lehman did not find a solution in the market before it was too late, and why the Government did not bail Lehman out. The empirical account suggests that Lehman could have found a solution if this was its preference, and that the government did indeed, counter to the official explanation, have the power to rescue Lehman from bankruptcy. The thesis' stylized game theoretical...

  15. The persistent effects of a false news shock

    OpenAIRE

    Carvalho, Carlos; Klagge, Nicholas; Moench, Emanuel

    2009-01-01

    In September 2008, a six-year-old article about the 2002 bankruptcy of United Airlines' parent company resurfaced on the Internet and was mistakenly believed to be reporting a new bankruptcy filing by the company. This episode caused the company's stock price to drop by as much as 76 percent in just a few minutes, before NASDAQ halted trading. After the 'news' had been identified as false, the stock price rebounded, but still ended the day 11.2 percent below the previous close. We explore thi...

  16. The Interplay Between Different Types of Unsecured Credit and Amplification of Consumer Default

    OpenAIRE

    Felicia Ionescu

    2011-01-01

    We analyse, theoretically and quantitatively, the interactions between different forms of unsecured credit and their implications for default behaviour of young U.S. households. One type of credit mimics credit cards in the U.S. and the default option resembles a bankruptcy filing under Chapter 7 and the other type mimics student loans in the U.S. and the default option resembles Chapter 13 of the U.S. Bankruptcy Code. In the credit card market financial intermediary offers a menu of credit l...

  17. The Interplay Between Student Loans and Credit Cards: Implications for Default

    OpenAIRE

    Felicia Ionescu; Marius Ionescu

    2012-01-01

    We analyze, theoretically and quantitatively, the interactions between two different forms of unsecured credit and their implications for default behavior of young U.S. households. One type of credit mimics credit cards in the U.S. and the default option resembles a bankruptcy filing under Chapter 7 and the other type of credit mimics student loans in the U.S. and the default option resembles Chapter 13 of the U.S. Bankruptcy Code. In the credit card market financial intermediary offers a men...

  18. Atamanchuk Assessment and sale of property of the bankrupt in the process of elimination: Accounting and legal aspects

    OpenAIRE

    Грабчук, Ірина Леонідівна; Зеленіна, Олена Олександрівна

    2015-01-01

    With the adoption of the new Law of Ukraine «Restoring the debtor's solvency or bankruptcy» there was a series of questions relating to the conduct likvidating procedures and recognition of the company bankrupt.Therefore there is a need to consider major changes specifically related to assessment and property sales company in recognition of its bankruptcy , to identify the main issues that delve in carrying out operations specified in practice and to make suggestions for their solution.The re...

  19. Automatic Termination of wholesale transactions of electricity and natural gas. A mandatory choice?

    International Nuclear Information System (INIS)

    Authors argue that wholesale transactions in natural gas and most likely also electricity are subject to sections 38 and 237 of the Dutch Bankruptcy Code (Faillissementswet), the mandatory close-out netting sections. This would imply that parties can only choose for Automatic Termination under the EFET Agreements for power and natural gas wholesale or similar mechanisms, in case of bankruptcy (faillissement) or suspension of payments (surseance van betaling) of Dutch (counter)parties, regardless whether Dutch law applies to the agreement or not

  20. A Multi-industry Default Prediction Model using Logistic Regression and Decision Tree

    Directory of Open Access Journals (Sweden)

    Suresh Ramakrishnan

    2015-04-01

    Full Text Available The accurate prediction of corporate bankruptcy for the firms in different industries is of a great concern to investors and creditors, as the reduction of creditors’ risk and a considerable amount of saving for an industry economy can be possible. Financial statements vary between industries. Therefore, economic intuition suggests that industry effects should be an important component in bankruptcy prediction. This study attempts to detail the characteristics of each industry using sector indicators. The results show significant relationship between probability of default and sector indicators. The results of this study may improve the default prediction models performance and reduce the costs of risk management.

  1. 10 CFR 1015.403 - Termination of collection activity.

    Science.gov (United States)

    2010-01-01

    ...) Costs of collection are anticipated to exceed the amount recoverable; (4) The debt is legally without.... (a) DOE may terminate collection activity when: (1) DOE is unable to collect any substantial amount... terminate collection activity on a debt that has been discharged in bankruptcy, regardless of the...

  2. 31 CFR 903.3 - Termination of collection activity.

    Science.gov (United States)

    2010-07-01

    ... of collection are anticipated to exceed the amount recoverable; (4) The debt is legally without merit... terminate collection activity when: (1) The agency is unable to collect any substantial amount through its... terminate collection activity on a debt that has been discharged in bankruptcy, regardless of the...

  3. 41 CFR 105-55.028 - Termination of collection activity.

    Science.gov (United States)

    2010-07-01

    ... amount recoverable; (4) The debt is legally without merit or enforcement of the debt is barred by any... unable to collect any substantial amount through its own efforts or through the efforts of others; (2... amount. GSA may continue collection activity, however, subject to the provisions of the Bankruptcy...

  4. Determinants of Financial Behaviours among Malaysians

    OpenAIRE

    Zauwiyah Ahmad; Maimun Simun; Md Shukor Masuod

    2010-01-01

    The importance of inancial literacy in promoting good inancial behaviour has been established in previous studies. Nonetheless, a study that speciically analyses Malaysian or Asian general public is very rare, despite various cases involving bankruptcies, suicides and harassment that result from improper financial decisions within the region. This study focuses on Malaysians' financial literacy and financial behaviour. It is hypothesized that financial behaviour...

  5. A Difficult Decision

    Institute of Scientific and Technical Information of China (English)

    2009-01-01

    The financial outlook began to look a bit more optimistic in September,as some economic indicators,such as the DOW Jones Industrial Average and the prices of physical assets,showed signs of recovery one year after the outbreak of the financial tsunami triggered by the bankruptcy of Lehman Brothers.But does the numeric

  6. A Third Wave of Crisis

    Institute of Scientific and Technical Information of China (English)

    2010-01-01

    @@ If we label the sub-prime mortgage crisis that broke out in the United States in March 2007 and the financial meltdown triggered by Lehman Brothers'bankruptcy in August 2008 as the first two phases of the global financial crisis,then we're,without a doubt,entering a third phase.

  7. Does bank failure affect client firms? Micro evidence from Estonia

    Czech Academy of Sciences Publication Activity Database

    Joeveer, Karin

    -, č. 224 (2004), s. 1-29. ISSN 1211-3298 Institutional research plan: CEZ:AV0Z7085904 Keywords : bank failure * client firm performance * firm bankruptcy Subject RIV: AH - Economics http://www.cerge-ei.cz/pdf/wp/Wp224.pdf

  8. 7 CFR 764.351 - Emergency loan uses.

    Science.gov (United States)

    2010-01-01

    ... than the USDA; and (7) Replace lost working capital. ... prior to the disaster; (v) Pay essential family living and farm operating expenses, in the case of an... that such costs must not include the payment of bankruptcy expenses; (2) Pay annual operating...

  9. Consumer Credit Card Use: The Roles of Creditor Disclosure and Anticipated Emotion

    Science.gov (United States)

    Wiener, Richard L.; Holtje, Michael; Winter, Ryan J.; Cantone, Jason A.; Gross, Karen; Block-Lieb, Susan

    2007-01-01

    In response to federal legislative reform aimed, in part, at reducing consumer bankruptcy filings, the authors conducted 2 experiments examining the role of affect in purchasing behavior. In Experiment 1, they examined consumer debtors, and in Experiment 2, they examined nondebtors. In both experiments, they investigated purchasing decisions made…

  10. Life after Death

    DEFF Research Database (Denmark)

    Hollensen, Svend; Boyd, Britta; Bogers, Marcel

    We analyze the more specific changes to the various components of Cimber’s business model, building on this historical perspective, and especially focusing on the recent developments surrounding the bankruptcy in May 2012. Some key findings with respect to the role of the family in business model...

  11. Weather the ups and downs of financial markets with sound advice from Extension

    OpenAIRE

    Sutphin, Michael D.

    2008-01-01

    Over the past few weeks, bankruptcies, government bailouts, and talk of a global credit crisis have rocked Wall Street, while a weakened housing market continues to trouble Main Street. Virginia Cooperative Extension encourages all citizens to review their financial situation and goals and not to panic when the market fluctuates.

  12. Posúdenie vypovedacej schopnosti predikčných modelov

    OpenAIRE

    Donocik, Erik

    2010-01-01

    This work concerns with methods used in bankruptcy forecasting. Based on paired-sample design, two firms -- failed and non-failed -- were selected for application of the ratio analysis and chosen prediction models on their accounting data. The aim is to compare the differences in failure prediction accuracy of the methods.

  13. Feeling the Pinch

    Institute of Scientific and Technical Information of China (English)

    2008-01-01

    Small and medium-sized enterprises need long-term remedies to help them shake off their financing problems many of China’s small and mediumsized enterprises (SMEs) are teetering on the edge of bankruptcy because of a shortage of capital. But

  14. 17 CFR 190.07 - Calculation of allowed net equity.

    Science.gov (United States)

    2010-04-01

    ... equity. 190.07 Section 190.07 Commodity and Securities Exchanges COMMODITY FUTURES TRADING COMMISSION BANKRUPTCY § 190.07 Calculation of allowed net equity. Allowed net equity shall be computed as follows: (a) Allowed claim. The allowed net equity claim of a customer shall be equal to the aggregate of the...

  15. Play and the Avant-Garde: Aren't We All a Little Dada?

    DEFF Research Database (Denmark)

    Prager, Phillip

    2013-01-01

    , and modeled a headpiece fashioned of sardine cans. To most art historians, Dada remains a culturally contingent expression of World War I trauma, nihilism, political disillusionment, and an aggressive attack on the moral bankruptcy of Western culture. The author suggests that this negative interpretation...

  16. Pausing, Pondering, and Partnering: Communicating in Financially Challenging Times

    Science.gov (United States)

    Gross, Karen

    2009-01-01

    In times of financial distress, the communication strategies of leaders of institutions of higher education are often flawed. This is because the best approaches to helping a campus deal with financial woes are counter-intuitive and require an understanding of money as a language. But bankruptcy law, financial counseling, psychology, and…

  17. Wary Eyes Monitoring Wall Street

    Science.gov (United States)

    Jacobson, Linda

    2008-01-01

    School business officials kept a close watch on the financial markets this week--and on district investment portfolios and teacher-retirement funds--as stock prices gyrated and once-sound institutions got government bailouts or crumbled into bankruptcy. While financial observers said it was too soon to predict how Wall Street's upheaval might…

  18. Banking on Reform in the Rising China

    Institute of Scientific and Technical Information of China (English)

    2007-01-01

    @@ About six years ago when China first entered the WTO and agreed to open up its retail banking market after a period of five years,many overseas media organizations held a pessimistic outlook that China s banking industry was headed towards bankruptcy.

  19. The economics of asset securitization

    OpenAIRE

    Ronel Elul

    2005-01-01

    Ronel Elul explains why asset-backed securities exist and discusses some reasons for their common structure. Elul notes that despite well-developed theories on the what and why of securitization, more research is needed. In particular, additional research could uncover the effect that government regulation and bankruptcy law have on securitization.

  20. 45 CFR 30.30 - Termination of collection activity.

    Science.gov (United States)

    2010-10-01

    ... amount through its own efforts or through the efforts of others; (2) The Department is unable to locate the debtor; (3) Costs of collection are anticipated to exceed the amount recoverable; (4) The debt is... activity on a debt that has been discharged in bankruptcy, regardless of the amount. The Secretary...

  1. 75 FR 17823 - Notice-Interpretation of 49 CFR 158.45

    Science.gov (United States)

    2010-04-07

    ... non-refundable tickets. See 14 CFR 158.45(a); 72 FR 28837 at 28843. However, a distinction must be... properly claim repayment of the PFCs from the airports (Aloha's bankruptcy estate or the credit card... for Operations. Dane S. Field Interim Trustee Estate of Aloha Airlines P.O. Box 4198 Honolulu,...

  2. Finanční analýza a. s. Crystelex, Nový Bor

    OpenAIRE

    Matušková, Petra

    2008-01-01

    The Financial analysis Crystalex a.s. examines a general financial situation of the company. I use classical methods for financial analysis. The significant part of my project is the application of creditworthy and bankruptcy models. The aim of my thesis is to find out if these models were able to predict the current situation for management in the past.

  3. Fianční analýza společnosti Eurest ČR

    OpenAIRE

    Šuran, Ondřej

    2011-01-01

    This thesis deals with the financial analysis of company Eurest, ltd. Its goal is to demonstrate appropriate methods of financial analysis, to apply them to a specific company and to interpret the results. The goal will be achieved through methods like analysis of financial statements, calculation of various financial ratios and ultimately bankruptcy model and analysis of financial health of the company.

  4. Finanční analýza společnosti Madeta, a.s.

    OpenAIRE

    Dufek, Ondřej

    2009-01-01

    The target of this financial analysis is general assessment of financial position of MADETA, a.s. in years 2003-2008. I used classical methods of financial analysis to this purpose (percentage analysis of financial statements, Du Pont analysis, bankruptcy models, EVA).

  5. 7 CFR 400.677 - Definitions.

    Science.gov (United States)

    2010-01-01

    ... charges (7 CFR 400.116). A delinquent debt does not include debts discharged in bankruptcy and other debts... engaged in farming. Means a person who, in return for a share of profits and losses, makes a contribution... of the Act, that has not been paid by the termination date specified in the applicable contract...

  6. Privatization: A Drain on Public Schools

    Science.gov (United States)

    Harvey, James

    2012-01-01

    According to James Harvey, the scale of the 2011 effort to privatize public education through vouchers and charters is "staggering," representing the culmination of a 30-year assault on public service in general and public education in particular. At a time when states are staring into the abyss of bankruptcy, he notes, public funds intended for…

  7. Does Government Subsidy Guide Private Universities towards Favorable Directions?: A Preliminary Analysis on Financial Data of Private Universities

    Science.gov (United States)

    Li, Jianmin

    2010-01-01

    With the decreasing college-aged population and the transforming policy environment in Japan, private universities are confronted with management crises, such as bankruptcy, mergers, etc. As the second largest source of funding, government subsidies for private universities is considered to have contributed to enhancing educational conditions and…

  8. Srovnání řízení úpadku mezi ČR a Vietnamem

    OpenAIRE

    Ho Sy, Quyet

    2012-01-01

    What is insolvency law? Probably everybody knows that it is used to procedure bankruptcy. How effectively do insolvency laws in Czech Republic and in Vietnam work? This thesis focuses on the comparison of the insolvency act in the Czech Republic and Vietnam. The methodology of the work is analysis. Contribution of this thesis is the evaluation of these laws with commentary by foreign authors.

  9. Finanční analýza podniku Pegas Nonwovens, S.A.

    OpenAIRE

    Dlugošová, Lenka

    2010-01-01

    The topic of this bachelor thesis is "Financial analysis of PEGAS NONVOWENS S.A.". The main objective is to identify and analyse the overall financial situation of this company. Financial analysis is performed by implementing ratio analysis, the horizontal and vertical analysis, calculation of economic value added indicator and applying reliability and bankruptcy models. The summary contains peer analysis.

  10. 12 CFR Appendix E to Part 225 - Capital Adequacy Guidelines for Bank Holding Companies: Market Risk Measure

    Science.gov (United States)

    2010-01-01

    ... Regulation EE (12 CFR Part 231); or (B) If the transaction does not meet the criteria set forth in paragraph... the purposes of section 555 of the Bankruptcy Code (11 U.S.C. 555), a qualified financial contract for... netting contract between or among financial institutions for the purposes of sections 401-407 of...

  11. 76 FR 22648 - Resolution Plans and Credit Exposure Reports Required

    Science.gov (United States)

    2011-04-22

    ... core business line. Resolution Plan required. Section --------.3 of the proposed rule requires each... business line or critical operation; (iv) The bankruptcy, insolvency of a material entity; (v) A material..., source of funding or liquidity utilized by the Covered Company, a material entity, a core business...

  12. 7 CFR 1280.402 - Assessments.

    Science.gov (United States)

    2010-01-01

    ..., bankruptcy, receivership or incapacity to act. In the event of a producer's, feeder's, seedstock producer's... producer, feeder, or seedstock producer shares the proceeds received for the lamb or lamb products sold, each such producer, feeder, or seedstock producer is obligated to pay that portion of the...

  13. 13 CFR 107.1810 - Events of default and SBA's remedies for Licensee's noncompliance with terms of Debentures.

    Science.gov (United States)

    2010-01-01

    ... assignment for the benefit of creditors without SBA's prior written approval. (3) Bankruptcy. You file a...) Failure to maintain diversity. You fail to maintain diversity between management and ownership as required... your board of directors as is sufficient to constitute a majority of such board; or (2) With respect...

  14. STUDY ON THE SOLVENCY OF ROMANIAN COMPANIES

    Directory of Open Access Journals (Sweden)

    BATRANCEA IOAN

    2012-07-01

    Full Text Available Abstract.In this paper the authors describe how the analysis of solvency to prevent bankruptcy of Romanian companies. In this respect safety intervals are identified by the authors after analyzing the financial condition of more than 900 Romanian companies.

  15. EXPRESS - METHOD FOR EVALUATION OF FINANCIAL CONDITION OF AGRICULTURAL ORGANIZATIONS Экспресс-метод оценки финансового состояния сельскохозяйственных организаций

    Directory of Open Access Journals (Sweden)

    Zhminko N. S.

    2013-09-01

    Full Text Available In the article we have theoretically proved and justified the need to develop an algorithm for constructing and sharing practical methods of rating and discriminant modeling express models of financial analysis and forecasting of economic agents bankruptcy of agricultural sector characterized by a high degree of reliability of reporting results in contrast to the currently existing techniques

  16. Taking the Law into Your Own Hands.

    Science.gov (United States)

    Pedzich, Joan

    1993-01-01

    Describes how to select materials needed by the growing legal self-help movement, the importance of currency, and publishers in the field. An annotated bibliography of 25 titles includes general guides and books focusing on estate planning, going to court, contracts, animals, immigration, domestic issues, real estate, and bankruptcy. (KRN)

  17. Yugoslavia's Economic Crisis: the Price of Overexpansion

    NARCIS (Netherlands)

    W. Burger (Willem)

    1984-01-01

    textabstractYugoslavia is one of the rapidly industrialising countries which has had a record of very high rates of economic growth over the past decades and which is now balancing on the brink of bankruptcy. That its grave financial problems have not attracted as much international attention as tho

  18. Capital Structure and International Debt Shifting

    NARCIS (Netherlands)

    Huizinga, H.P.; Laeven, L.; Nicodeme, G.

    2006-01-01

    This paper presents a model that relates a multinational firm's optimal debt policy to taxation and to non-tax factors such as the desire to prevent bankruptcy. The model yields the predictions that a multinational's indebtedness in a country depends on national tax rates and differences between nat

  19. 77 FR 75628 - STS Hydropower, Ltd., Dan River, Inc., and City of Danville, VA; Notice of Application for...

    Science.gov (United States)

    2012-12-21

    ... Energy Regulatory Commission STS Hydropower, Ltd., Dan River, Inc., and City of Danville, VA; Notice of..., 2012, Jeoffrey L. Burtch, as Chapter 7 Bankruptcy Trustee for Dan River, Inc. and STS Hydropower, Ltd... the license for the Schoolfield Hydroelectric Project from Dan River, Inc. and STS Hydropower, Ltd....

  20. 77 FR 35711 - Strong Cities, Strong Communities National Resource Network Pilot Program Advance Notice and...

    Science.gov (United States)

    2012-06-14

    ..., systems, and practices that support holistic and sustainable economic development; and Generate a... governments closer to bankruptcy and further from solutions to the ever more complex challenges their.... Capacities should include, but are not limited to: Public budgeting, governance reform, system and...