Financial distress precedes bankruptcy. Most financial distress models actually rely on bankruptcy data, which is easier to obtain. We obtained a dataset of financially distressed but not yet bankrupt companies supplying a major auto manufacturer. An early warning model successfully...

Purpose – Early warning models are a widely employed development in modern finance. A good early warning model predicts with a high degree of accuracy the likelihood that a healthy company will either go bankrupt or become financially distressed. Now that B2B companies supply products...

This article examines the shareholder wealth effects for foreign companies that announce acquisitions of financial institutions in Latin America. We examine data for 636 transactions for the period 1985–2009. We employ event study methodology coupled with a cross-sectional regression to...

Seven major Latin American countries had moderately high growth rates during the period 2001–2012.We used indicators of capital market modernization and corruption to explain the widely varying GDP growth figures for each time frame and also assessed whether export growth was highly...

The gap between wealthy and poor is widening, in part due to the epochal rise in the value of financial assets. Middle‐class savers channel their monthly contributions into mutual funds, which in turn invest the money in stocks and bonds. These accounts then accumulate, and the gains are...

A method for ranking cross-border capital investment projects is proposed which makes direct use of stock-market valuation standards. The contribution of each proposed project is ranked according to how much the project would add to stock-market valuation of the parent company. The host country...