We propose a framework for an ensemble bankruptcy classifier that uses if-then rules to combine the outputs from a heterogeneous set classifiers. A genetic algorithm (GA) induces the rules using an asymmetric, cost-sensitive fitness function that includes accuracy and misclassification costs....

The persistently low pay‐performance sensitivity between executive compensation and firm performance has puzzled both practitioners and academics. We propose a hybrid model that incorporates both moral hazard and adverse selection problems to explain this puzzle. We argue that the managerial...