Dynamic analysis of the business failure process: A study of bankruptcy trajectories

du Jardin, Philippe and Séverin, Eric (2010): Dynamic analysis of the business failure process: A study of bankruptcy trajectories. Published in: Proceedings of the 6th Portuguese Finance Network Conference, Ponta Delgada, Azores , Vol. 2010, (1 July 2010)

Abstract

This study examines a method of analyzing the dynamics of financial failure. Using a large amount of data and a Kohonen map, we show how to depict company trajectories of behavior and movement to terminal failure We also show how to analyze these trajectories to describe and understand the dynamics of bankruptcy and how to use them as a diagnostic tool.

• Item Type: MPRA Paper
• Language: English
• Keywords: Company failure; Financial failure dynamics; Bankruptcy trajectories
• Subjects: C - Mathematical and Quantitative Methods > C4 - Econometric and Statistical Methods: Special Topics > C45 - Neural Networks and Related Topics; G - Financial Economics > G3 - Corporate Finance and Governance > G33 - Bankruptcy ; Liquidation

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