We examine the relationship between corporate governance and default risk for a sample of firms cited in the Securities and Exchange Commission’s Accounting and Auditing Enforcement Releases (AAERs). Using hazard analysis of actual default incidence and OLS regressions of a continuous variable...

SUMMARY This paper proposes a framework for an ensemble bankruptcy classifier that uses if–then rules to combine the outputs from a heterogeneous set of classifiers. A genetic algorithm (GA) induces the rules using an asymmetric, cost‐sensitive fitness function that includes accuracy and...

We examine insider trading around open-market share repurchases and find that insiders trade passively in 3 months prior to repurchase announcements and in up to 12 months following the announcements. Furthermore, both pre-announcement and post-announcement abnormal insider trading is...

This paper analyzes the reorganization procedure introduced into the Chinese bankruptcy system in 2007. It shows that managers devote more effort during the reorganization than before the bankruptcy when the emergence value of the bankrupt firm is substantial. In addition, in the pre-bankruptcy...