Bankruptcy determinants in time variant settings
| Authors | |
|---|---|
| Year of publication | 2020 |
| Type | Article in Proceedings |
| Conference | ITEMA 2019 |
| MU Faculty or unit | |
| Citation | |
| web | https://www.itema-conference.com/wp-content/uploads/2020/08/ITEMA.S.P.2019.53.pdf |
| Doi | http://dx.doi.org/10.31410/ITEMA.S.P.2019.53 |
| Keywords | Survival Analysis; Time Dependent; Dynamic; Assets; Equity; Sales; Change from Previous Period; Kernel Smoothing; Accounting Statement |
| Attached files | |
| Description | This paper aims to assess importance of widely used bankruptcy discriminants in dynamic, time dependent environment as opposed to more traditional, static methods used in bankruptcy models. Such setting gives way to new, process oriented, point of view on companies nearing their bankrupt. Subsequently, new simple discriminants with stronger relationship to bankruptcy are proposed while strictly using only widely available information from accounting statements. Behaviour of both proposed and traditional discriminants is examined through kernel smoothing and discriminant’s evolution before bankruptcy and thus the reasons behind their respective predictive powers are uncovered. |
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