We elaborate on the consumption capital asset pricing model (CCAPM) to reveal a set of underlying forces that determine asset returns. We use generalized preferences, allow for labor-leisure choice, a broad asset portfolio, and holding international claims. A calibration of the model with US...

Empirical models of a potential failure process that incorporate distress states between the extremes of corporate health and bankruptcy are uncommon. We depict financial distress as a series of financial events that reflect varied stages of corporate adversity. Our intent is to provide...