Current Issue : October - December Volume : 2018 Issue Number : 4 Articles : 4 Articles
This study tests the accuracy of the Altman bankruptcy prediction model for a\nwide private companies� sample that went bankrupt in the years 1985 to 2013.\nFinancial ratios used in the model calculations, Z�-Score (Altman�s Z for private\ncompanies) also provide useful information on the solvency and probability\nof bankruptcy for privately held companies from the sample. The findings\ndo not support the assertion that the Z�-Score can be generalized to\ncountries and sectors different from industrial sector. The general number of\nbankruptcies may be an antecedent variable to certain economic and/or financial\ncrises, but the results indicate a correct identification of bankruptcy\nrisk only to two thirds of the sample of companies....
In this paper, we study the optimal level of cash for the firm to hold. We model\nthe cash level with inflows and outflows due to deposits and withdrawals; in\nbetween, the cash level is a stochastic process where it signals a time to sell.\nAfter modeling the continuous jump, we implemented first step analysis method\nto find the probability of the event with initial cash and we were able to\ncalculate data driven by set of difference equations. These data are used to determine\nthe length of the period of the investment. Then, we adopt the probabilistic\ndecision model where it goes under mathematical optimization. This\nmodel let the investor to maximize the probability of success or to stop on one\nof the largest fortunes using the equation of the principle of optimality. Finally,\nto solve these optimal equations, we used the result of positive dynamic\nprogramming and we elaborated them by proves....
In this paper, the institutional environment is included in the study of the risk\nof commercial banks, and the impact mechanism of the risk of commercial\nbanks under the background of system reform is discussed. This paper constructs\na theoretical model of institutional factors on the risk of commercial\nbanks, and discusses the possibility of the impact of the institutional environment\non the bank risk, and constructs a non-balanced panel regression model\nby selecting the variables that reflect the unsystematic risk and systemic risk of\nthe bank, and carries on the empirical analysis....
The global financial crisis triggered by the US subprime mortgage crisis in\n2008 has caused serious impact on the financial system around the world,\nwhich also aggravated the banking system. Since the banking industry is the\ncore element of financial system, various scholars and relevant regulatory authorities\nhave paid attention to the stability of the banking system. Unlike the\ntraditional qualitative research, many scholars have adopted the method of\ncomputational finance based on the complex network theory to explore the\nbanking system in recent years. Therefore, this paper has carried out a literature\nreview of the stability of banking system under different network structures.\nIt presents the analysis of model and results so as to have a clear understanding\non the topic....
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