But parents who cosign the student loans of their children have also created another
bankruptcy risk factor.
"In the August 22, 2014 report, entitled 'Ligand Pharmaceuticals' (NASDAQ: LGND) Institutional Holders waste no time dumping stock in response to Insolvency and
bankruptcy risk,' Lemelson asserted that Ligand was in critical financial trouble.
As such, the greatest risk of the transaction is the
bankruptcy risk of the lessee airline.
We also examine which factors may mitigate lenders'
bankruptcy risk in these neighborhoods.
The rally has little to do with underlying fundamentals, and much more to do with perceptions surrounding liquidity
bankruptcy risk, the analyst contends.
Thus, startups would face the
bankruptcy risk in the short term should the demand be lower than expected.
This method is frequently used for evaluation of aggregate risks, for instance
bankruptcy risk, which assembles all the performance/failures results from point analysis (on different segments of the activity), based on financial rates, the comparison method (or other methods).
Dichev (1998) analyzed the relationship of
bankruptcy risk with size and book to market ratio by using widely used models (Altaian's model and Ohlson's model) as a measure of
bankruptcy risk.
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.
The bankruptcy prediction has been studied extensively in financial literature for the last 51 years (since 1966 when Altman published the multivariate analysis model forecasting corporate
bankruptcy risk --for example: Chen, Ribeiro, Vieira & Chen, 2013; Iturriaga & Sanz, 2015; Jardin, 2015; Lin, Liang, Yeh & Huang, 2014; Tsai, 2014).
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., 2016) even before BAPCPA became operable.
A bi-annual study of consumer bankruptcies by my firm, Hoyes Michalos & Associates Inc., consistently shows that a high ratio mortgage is a significant
bankruptcy risk factor.
