The rally has little to do with underlying fundamentals, and much more to do with perceptions surrounding liquidity
bankruptcy risk, the analyst contends.
There is a substantial body of literature that examines the effect of auditee firm-specific characteristics on auditors' judgments in various settings, such as auditors' litigation risk, audit fee pricing, auditee firm's
bankruptcy risk and auditors' decision to issue a going concern opinion.
BAPCPA should not have had any consequence for the a priori safer individuals with low likelihoods of resulting in bankruptcy before reimbursing their student loans (Nica, 2016): the loan issuers should have envisaged that such borrowers presented practically no
bankruptcy risk (Popescu et al.
consistently shows that a high ratio mortgage is a significant
bankruptcy risk factor.
The economy's globalization which culminated with the global financial crisis that erupted in 2007 has affected the economies around the world demonstrating that the results of research studies on
bankruptcy risk prediction are insufficient.
The researchers note that uninsured individuals who need hospital care can experience reduced access to credit and elevated
bankruptcy risk, along with unpaid medical bills.
Factors considered include high-risk behaviors like regulatory actions, amended filings and
bankruptcy risk.
We suggest above that equity holders should react by demanding payment for
bankruptcy risk in addition to payment for financial risk.
THE DISCRIMINANT ANALYSIS IN
BANKRUPTCY RISK PREDICTION
AGR scores were developed based on factors including high-risk events, revenue and expense recognition methods, SEC actions, and
bankruptcy risk.
In assessing each company, factors including high-risk events, revenue and expense recognition methods, SEC actions, and
bankruptcy risk are all considered as indicators of a company's credibility.
Upon closer examination of the data, it is clear that the fraud cases generally have higher
bankruptcy risk than the nonfraud cases.
