73rd International Atlantic Economic Conference

March 28 - 31, 2012 | Istanbul, Turkey

Issues in modelling the financial distress and bankruptcy of companies

Friday, 30 March 2012: 5:10 PM
Marek GruszczyƄski, Ph.D. , Institute of Econometrics, Warsaw School of Economics, Warszawa, Poland
Approaches to modelling financial distress and bankruptcy are examined from the point of view of their applicability to real life situations. The survey includes two- and multistate failure models, especially nested logit and competing-risk models. Drawbacks of quantitative approaches for predicting distress/bankruptcy are investigated.