This study develops a corporate bankruptcy classification model from a sample of 258 bankrupt and non-bankrupt companies, covering the period 1986-2008. Instead of depending on traditional ratios, it uses a simple exponential function-based algorithm to improve the stability of financial data....

Previous research claims that industry-relative financial ratios are more stable than unadjusted ratios. Yet, most bankruptcy studies continue to use unadjusted financial ratios to develop bankruptcy-prediction models. In re-examining whether industry-relative ratios are actually more stable, we...

Geostatistical spatial models are widely used in many applied fields to forecast data observed on continuous three-dimensional surfaces. We propose to extend their use to finance and, in particular, to forecasting yield curves. We present the results of an empirical application where we apply...