History of Bankrupt Companies - Annotated Bibliography Example

History of bankrupt companies Grade (26th, Nov. Altman, E. 1968. Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. Journal of Finance 23 (4), 589-609. This article focuses on corporate bankruptcy, how it has evolved historically, and the factor models that have been used to predict it over time. The article analyses how corporate bankruptcy was traditionally assessed and predicted through ratio analysis, and how the practice have changed over time to encompass other complex but more accurate and reliable models. The article canters its study on the evaluation of the weaknesses associated with ratio analysis as an analytical technique for determining business performance. Consequently, the article assesses how better a business is placed to meet its financial obligations, while citing the bankruptcy risks involved. The transition from the application of ratio analysis technique to other models of predicting bankruptcy, following the susceptibility of financial ratio analysis to financial difficulties, is advanced by the article, making it possible to trace the history of bankruptcy over a period of time. The article seeks to advance this study to include the evaluation of multi discriminant analysis (MDA) and Regression analyses, as suitable analytical techniques of evaluating the financial situation of a company, consequently displaying the bankruptcy risks involved. The article is relevant for this study, since it helps in tracing the evolution and advancement of corporate bankruptcy, with a focus on how corporate bankruptcy has been assessed over time. Alper, M. (2007). Opportunistic informal bankruptcy: how BAPCPA may fail to make wealthy debtors pay up. Columbia Law Review 107(8), 1908-1943. The use of bankruptcy as the recourse for individual and company debts is assessed under this study, with a focus on understanding how bankruptcy have been used to prevent individuals and companies from paying the debts. The article analyses the laws applicable in preventing the abuse of bankruptcy concept, evaluating how well they shield companies from facing bankruptcy suits. Notably, the article concentrates on evaluating how wealthy individuals and companies can use the bankruptcy concept as a loophole to help them have their debts discharged, and at the same time remain with their assets intact. Thus, the role of opportunistic debtors in advancing company bankruptcy in the history of corporate bankruptcy is evaluated. The concepts of involuntary bankruptcy and informal bankruptcy are also studied under the article, with the intention of unearthing the loopholes presented by these concepts, which can accelerate the abuse of bankruptcy. This article is relevant for this study, since it helps in creating awareness on various loopholes that have been applied to abuse bankruptcy in the history of company bankruptcy. Amy, Y. & Robert, J. (2009). Factors Associated with Hospital Bankruptcies: A Political and Economic Framework. Journal of Healthcare Management 54(4), 252-272. This article concentrates its study on hospital bankruptcies, seeking to understand the causes for the accelerated hospital bankruptcy cases in the US between 2000 and 2006. The focus of this study is to analyze the main factors behind the bankruptcy filings by hospitals, mainly categorized as either political or economic factors. The characteristics of the organizations that file bankruptcy cases are studied, with a view to differentiating the organizations that file bankruptcy suites with genuine intentions, and those that uses bankruptcy as a channel of relieving their debts. Therefore, the article analyses the hospital data of all hospitals that filed bankruptcy cases during this period, seeking to find how many of the hospitals eventually closed down and how many revived their operations. This article becomes very vital for studying the history of bankruptcy in companies, since it highlights the motivating factors and the intentions with which company bankruptcy filings are made. Bellovary, J. (2007). A Review of Bankruptcy Prediction Studies: 1930 to Present. Journal of Financial Education 33, 1-43. Predicting bankruptcy is a vital aspect for companies, since it helps to understand the risk that a business is running into and the possible way out. Therefore, this article seeks to trace the history of bankruptcy predictions starting 1930 to present day. The article traces the prediction of bankruptcy since the initial days when the predictors applied simple ratio analysis techniques, to the current methods that are applied. The main focus of the article is to evaluate the way company bankruptcy have evolved over time, seeking to highlight different models that have been used to predict and measure company bankruptcy. Additionally, the article presents various variables and major factors that have been considered in evaluating company bankruptcy, noting how the specific models and factor analysis have been undertaken. The article traces the uses of various models of analyzing company bankruptcy such as the discriminant model use in the period 1960-1970, Logit analysis for the period 1980s and Neural networks analysis for the 1990s. The article is relevant for this study, since it helps explain the history of company bankruptcy based on the models and factors of predictions that have been applied over time. This is essential to help understand how company bankruptcy has been addressed since 1930s to present day. Gelpern, A. (2012). Bankruptcy, Backwards: The Problem of Quasi-Sovereign Debt. Yale Law Journal 121(4), 888-942. Solving public debt has been a complex issue for both individuals and politicians. This is because, bankruptcy as a concept is open to many other complexities, mostly associated with the intentions and the motivations for filing bankruptcy cases by individuals and companies. This article seeks to explore all the motivations behind the filing of bankruptcy cases by public institutions and state agencies, more so, when such states gain sovereignty. Declaring the state of bankruptcy is more honourable and worthwhile for a state, as opposed to embarking on printing more money to indicate that the state of affairs is still good. Thus, this article seeks to understand how states have struggled to deal with the problem of debts, with a view on how the attainment of sovereignty by states, open for options to indulge in bankruptcy filings, with the intention of having them released off the hook of debt. This article becomes very relevant for studying the history of company bankruptcy, since it helps in exploring the historical application of bankruptcy as an option to relieve an entity from debts. Rothschild, P. (2012). Bad guys in bankruptcy: excluding ponzi schemes from the stockbroker safe harbour. Columbia Law Review 112 (6), 1376-1408. This article seeks to advance the study of the history of company bankruptcy, citing the two main factors of characterizing corporate bankruptcy; minimizing systemic risks leading to bankruptcy and addressing remedy for frauds, which are major causes of company bankruptcy. The effect of bankruptcy on a company’s shares and performance in the security market is addressed by this study, focusing on how the declaration of bankruptcy of a certain company lowers the share prices of the company in the stock markets, and citing the reasons behind the decline of the share prices. Additionally, the article focuses its study on the evaluation of the impacts of market instability on company bankruptcy. In so doing, the article seeks to assess how the consistent fluctuation of share prices in the security market can contribute to the bankruptcy of a company. The loopholes created by such market instability and share price fluctuations, which may lead to the company stakeholders being defrauded, are analyzed. The article mostly centers its discussion on the two major bankruptcies in the history of company bankruptcy, the Lehman and Madoff bankruptcies. Here, the study focuses on the role played by systemic security risk and security fraud in advancing the bankruptcy for these companies. Therefore, this article is relevant for the study, since it helps in the identification and analysis of causes of company bankruptcy, based on the two major historical corporate bankruptcies. Read More