Bankruptcy Of Companies Research Articles

Stranded Asset Impairment Estimates of Thermal Power Companies Under Low-Carbon Transition Scenarios

The aspiration to reach the net zero carbon target has initiated new ideas for the sustainable development of the world economy. However, it has also accelerated the formation of stranded assets in high-carbon-emitting companies. Taking a Chinese thermal power company as an example, this paper proposes a model to estimate the degree of impairment loss for thermal power companies by integrating the net present value model with forward-looking carbon emission pathways under different policy intervention scenarios. The results show that under the low-carbon transition scenario with different policy interventions, the percentage of impairment loss of thermal power companies reaches up to 64.09%. Furthermore, impairment losses formed by stranded assets in the thermal power sector impose a severe shock on the national economy, as most of the impairment losses will ultimately be borne by the state treasury. Compared with conventional thermal power generation, new-energy power generation has a weak performance in delaying company bankruptcy caused by stranded assets. Therefore, in the process of a low-carbon transition, governmental departments should focus on the impairment loss of thermal power companies caused by stranded assets and should further integrate “green support” and “brown punishment” policies to effectively promote the low-carbon transition of thermal power companies.

A Constructivist Leader Avoids the Bankruptcy of an Emblematic Company and the Deepening of Deindustrialization in Europe: Lessons From a Case Study

Confronting a complex reality always causes a mixture of shock that continues, even after acceptance. The moment Bertrand Martin takes over C.M.M. Sulzer-France in 1984, the company is in the disaster situation. With the Naval Construction crisis, the order book quickly ran out, the stock warehouses were full, and people's morale was at a level close to exhaustion. Everyone expected either closure or, at the very least, a massive collective dismissal. B. Martin's position surprises everyone and everything, equivalent to a real electroshock, according to his own expression. In a staff meeting, called by him to “say what he came for”, B. Martin (or a member of his management team) holds back and does not even formulate a word that evokes “solutions”. Faced with the dramatic events that the company was experiencing, B. Martin says he is at this staff meeting to hear… solutions, as an alternative to closure or massive layoffs. Rarely have words like these been heard in companies in a country accustomed to a hierarchical organizational culture and job cuts in response to crises. Voluntary problem-solving groups, involving more than 300 people from all hierarchical levels, developed a plan with 450 measures. The workers' assembly votes on the plan unanimously. In a short time, the company changes radically and comes out of the red, accepting a difficult challenge, associated with an order for two large power plant engines, for China, previously considered unrealizable. The dynamics introduced into the company become proverbial with unusual repercussions throughout France. The case seems to fit more into the order of counter factuality than a plausible situation. Four orders of reasons seem to have contributed to the novelty of the director general's communication: (1) A general director who, instead of starting by presenting a speech of hope (to create a climate of positive expectation), as is customary to do, exposes the naked reality for everyone to observe. (2) A leader who says he has no solutions but was available to listen to the solutions to be found within the organization. (3) An entrepreneur who knew how to listen to himself and listen to what he would call a “crazy dream” that mobilized the talents of each subject. (4) A people engineer who knew how to intuit, as an organizational reference, the thirst for collectively shared change and which would allow 70% of all four hundred proposals from the working groups to be carried out in six months. The constructivist transformational leadership of this leader, unlikely given the context, Bertrand Martin, made the difference, in a situation where “hope seemed to have disappeared”, in the words of Dante, in the “Divine Comedy” – sequel to Inferno.

Financial and Market Implications of the CSX-Conrail Acquisition

Conrail, Consolidated Rail Corporation, founded in 1976, was established due to the bankruptcy of multiple railway companies in the Northeast and Midwest regions of the United States. The federal government intervened to establish the company with the aim of restoring the services and profitability of bankrupt railways. As it developed, Conrail's railway network covered major cities and industrial centers in the Northeast and Midwest of the United States, possessing a strong market position and strategic value. Therefore, Conrail had become a target for mergers and acquisitions by large railway companies such as CSX and Norfolk Southern. Through mergers and acquisitions, the acquiring party could expand market coverage, enhance operational network connectivity and competitiveness. This is a complex and multi-layered issue, the CSX acquisition of Conrail involved financial and market implications, legal obstacles, competitive pressures, and strategic objectives. By analyzing these themes in depth, we could understand the key issues and response strategies that enterprises face in the M&A process, providing valuable experience for future M&A transactions. The study applied methods such as comparative analysis and case model analysis to analyze the main challenges, response strategies, and effects comprehensively and systematically in the M&A process, providing reference for similar cases. Overall, CSX's acquisition of Conrail demonstrates how companies can achieve acquisition goals and long-term development through flexible strategies, effective communication, and professional management in the face of complex legal, market, and operational challenges.

The Power of Numerical Indicators in Predicting Bankruptcy: A Systematic Review

This paper systematically reviews the behavior of numerical indicators in predicting future bankruptcy of companies through statistical analysis models. Following the PRISMA standard, ten primary studies were included in the review. The obtained results underline (1) the ability of numerical indicators, through simple statistical analysis models, to forecast the bankruptcy of businesses and companies and (2) the reliability of cash flows in predicting financial distress through statistical analysis, and (3) models are built with indicators from a specific economy; it is impossible to consider them stable and unchanging, as changes in a country’s economic conditions can potentially impact their predictive accuracy.

The Bankruptcy of Foreign Companies

Abstract Until recently, in Russian jurisprudence prevailed a conservative approach. According to it, Russian courts did not consider themselves an appropriate forum for the bankruptcy of foreign companies. The situation started to change in April 2022, when the first judicial act opening bankruptcy proceedings in respect of a foreign company was rendered. This case reached the Supreme Court of the Russian Federation and paved the way for subsequent similar cases. As a result, in February 2024 the Supreme Court of the Russian Federation issued a landmark ruling which set an important precedent regarding several fundamental questions of cross-border insolvency in Russia. This article tracks the development of case law and the shifts in the focus of judicial reasoning towards stronger and more effective protection of the creditors’ interests. It gives an overview of the applicable rules in the absence of special regulation of cross-border insolvency. The article identifies the criteria developed by courts and common features of foreign entities currently most affected by the changes in case law. These changes demonstrate how jurisprudence strategically adjusts to the challenges of our time and customizes international trends.

Research on Interest Spread Risk of Commercial Pension Insurance in the Context of Negative Interest Rates

In the current low-interest-rate environment, the high-quality development of the life insurance industry faces many challenges. Among them, interest rate spread risk has a significant impact on the stable operation and long-term healthy development of the life insurance industry. Interest rate spread risk has characteristics such as long-term nature, hidden potential, and systematic impact. When severe, it can lead to the bankruptcy of insurance companies and bring about systemic crises in the industry. This article redefines negative interest rates and the risk of interest rate spread loss in commercial pension insurance, and reviews related literature.

THE INFLUENCE OF BUSINESS STRATEGY, SUPERVISORY EFFECTIVENESS AND SUSTAINABLE GROWTH RATE IN BANKRUPTCY PREDICTION

This research aims to test and prove how influence business strategy, supervision effectiveness and sustainability growth level have in predicting bankruptcy. The research is quantitative research, which uses a panel data regression analysis model. The research sample is companies that are included in the special monitoring category of the Indonesia Stock Exchange in April 2024, with PKPU status or have negative equity in companies operating in the property and real estate industry. The results of the research show that business strategy, supervision effectiveness and the level of sustainability growth of a company have a significant influence of 49% in predicting bankruptcy of companies in the property and real estate industry in the 2019 - 2023 research period. Meanwhile, business strategy and supervision effectiveness have a positive influence. against Financial Distress. Meanwhile, the Sustainability Growth Rate has a negative effect on Financial Distress, where the more a company does not experience sustainability, the closer it is to the bankruptcy area. Meanwhile, firm size as a control variable in this study does not have a significant effect on Financial Distress.

Machine Learning Analysis in Predicting Bankruptcy in Companies (Case Study of Manufacturing Companies Listed on the Stock Exchange)

Machine Learning Analysis in Predicting Bankruptcy in Companies (Case Study of Manufacturing Companies Listed on the Stock Exchange)

Comparative analysis of models (Altman, Grover, Zmijewski, Springate) in predicting company bankruptcy potential in the non-cyclical consumer sector

This research aims to conduct a comparative analysis of models (Altman, Grover, Zmijewski, Springate) in predicting potential bankruptcy for companies in the non-cyclical consumer sector listed on the IDX in 2020-2022. The main aim of this research is to test the results of the comparison of four models and test the accuracy of the prediction model in predicting bankruptcy. The data in this research is 240 data, namely 3 years of timeseries data and 80 companies using purposive sampling techniques according to certain criteria. Data analysis used the Kruskal Wallis Difference Test and Accuracy Level Test. The research results show that the Altman, Grover, Zmijewski, and Springate models have significant differences in results in predicting bankruptcy and the accuracy level test produces the Grover model with the best level of accuracy in predicting bankruptcy in non-cyclical consumer sector companies in 2020-2022.

Peculiarities of the legal status of creditors and their representative bodies in cases of bankruptcy of limited liability companies

The article examines the legal status of creditors and their representative bodies in bankruptcy cases of limited liability companies. It is noted that one of the main tasks of the Code of Ukraine on bankruptcy procedures is to satisfy the demands of creditors. On the basis of judicial practice, it is determined that the mandatory task of bankruptcy proceedings is the fair satisfaction of the entire set of creditors’ claims in the order of priority established by law. Therefore, proceedings in bankruptcy cases are objectively formed on the basis of creditor competition. Therefore, the purpose of bankruptcy proceedings is to balance the realization of the rights and legitimate interests of the participants in the case. An urgent task is to develop and apply an effective mechanism for the interaction of creditors with other participants in bankruptcy proceedings, to establish at the legislative level and in the practical aspect the proper regulation of the legal status of creditors in order to provide them with effective means of protection against the dishonest behavior of other participants in bankruptcy procedures and to fairly satisfy them requirements It is proposed, in particular, to amend a number of provisions of the Code of Ukraine on Bankruptcy Procedures, in particular, to the second part of Article 90 of the Code of Ukraine on Bankruptcy Procedures and to put it in the wording determined by the author, to return the provisions of the second part of Article 11 of the Law of Ukraine «On Restoring the Debtor’s Solvency or Recognition of bankrupt», etc. Peculiarities of the legal status of secured, current, bankruptcy creditors in bankruptcy cases of limited liability companies are analyzed. Attention is drawn to the fact that with the adoption of the Code of Ukraine on bankruptcy procedures compared to the previous Law of Ukraine «On restoring the debtor’s solvency or declaring him bankrupt», the protection of the rights and legitimate interests of secured creditors has improved by improving the legal regulation of bankruptcy procedures. It was concluded that the creditors interact with each other by convening and holding creditors’ meetings and making a decision to create a representative body - the creditors’ committee, determine its quantitative composition and elect its members. At the same time, creditors of companies must take into account and take into account the rights and legitimate interests of each other, observing the principles of inadmissibility of abuse of procedural rights, competition and legality.

Settlement of Workers' Rights at PT Satelit Bintang Persada Through PKPU Legal Efforts at the Medan Commercial Court

<p>Generally, if a company is no longer able to provide for the welfare of its employees, then the company experiences a financial crisis and this will result in the company's bankruptcy. Bankruptcy or bankruptcy is legal certainty received by the debtor because of the court's bankruptcy decision. The result of bankruptcy is that the debtor's assets are placed under investment so that the debtor cannot have his assets back. The problem is that this research was conducted to reveal how the rights of PT workers are resolved. Bintang Persada Satellite through legal action at the Medan District Court and how the PKPU was resolved at the Medan Commercial Court. The research method uses normative juridical research methods. The research results show that PT. Bintang Persada Satellite was found guilty and had to pay workers their rights in accordance with the provisions of article 156 of Law no. 13 of 2003 which includes severance pay, long service awards and rights assignment money. Meanwhile, in the case of delayed debt payment obligations (PKPU) which occurred at PT. Bintang Persada Satellite where the company is deemed incapable and is no longer actively running its busines.</p>

Pengaruh Popularitas Media Sosial Perusahaan Terhadap Asimetri Informasi pada Perusahaan LQ45

Information asymmetry can have many negative impacts in the business world, such as moral hazard, monitoring costs, financial ineffectiveness, financial crises, company bankruptcy, and investment decision making errors by investors. Information asymmetry can be reduced by information transfer and communication. In the technological era, this information can be conveyed via digital platforms such as social media. Social media has recently become a company's main concern to support business performance. The important role of social media is not only felt in increasing market share but has been proven to help companies increase company value. The aim of this research is to prove the impact of social media popularity on information asymmetry in LQ45 companies in Indonesia. This research is important to conduct to obtain empirical evidence of the impact of social media popularity on company information asymmetry in Indonesia. So far, studies on the popularity of social media still occur in many developed countries and have not been carried out much in developing countries, including Indonesia. Using a sample of 99 company-years, the data was analyzed using multiple regression analysis. The research results show that company social media (Facebook, Instagram and Twitter) have an effect on information asymmetry, while YouTube has not been proven to have an effect on information asymmetry. This research contributes in several ways. First, this research adds scientific insight into the impact of social media on the business sector. Second, this research can be a reference for stakeholders, especially company managers, to consider managing social media optimally, especially to reduce information asymmetry

Development of fuzzified neural network for enterprise bankruptcy risk estimation

The object of this study is the assessment of the level of enterprise bankruptcy risk. It is a critical component in assessing the financial condition of an enterprise, and also serves as an indicator that allows the management team to reduce potential risks and develop their own strategies to strengthen the financial condition of the enterprise. One of the most challenging aspects of bankruptcy forecasting is the complex financial situations of bankrupt companies. By accurately predicting the risk of bankruptcy, businesses can take preventive measures to mitigate financial difficulties and ensure long-term sustainability. Previous methods, such as Altman's Z-score, are not accurate enough, as presented in the study. The paper investigates a modern approach to bankruptcy prediction based on a neural network with complex neural elements, namely neural arithmetic logic units (NALUs) and a custom phasing layer. This layer can process complex raw numerical values, such as financial indicators relevant to the analysis of a company's bankruptcy. Compared to Altman's Z-score, the developed method demonstrates a better F1 score in bankruptcy classification (48 %). On the raw data, the neural network demonstrates an improvement in the F1 score by about 40 % compared to the classical multilayer perceptron (MLP) with linear layers and nonlinear activation functions. A modern replacement for ReLU called Mish was used, which achieves better generalization. It was also assumed that the addition of new neural elements, which provide the neural network with arithmetic capabilities, contributes to the performance of processing non-normalized input data. This work highlights the importance of using advanced neural network architectures to improve the accuracy and reliability of forecasting in financial risk assessment. Using the parameters presented in the study, managers of enterprises will be able to more accurately assess the risk of bankruptcy.

Advancements in Bankruptcy Prediction Models and Bibliometric Analysis

Since the economic downturn of the 1930s, there has been a growing interest in predicting company bankruptcies. Though not a new topic, the prospect of business bankruptcy has gained increasing relevance due to globalisation. This study explores various methodologies employed in predicting bankruptcy. Preventing bankruptcies also bolsters economic stability by averting the adverse effects of insolvency on the community. Companies with a solid and flexible economic foundation are more likely to succeed. This article reviews existing literature, discusses prevalent predictive models, and presents a statistical analysis of bibliometric data associated with bankruptcy prediction. This work aims to answer the research question of identifying the trends over time in the econometric models used to predict bankruptcy. This article may be useful for finance and business students in providing an overview of the subject and for business managers to identify the key determinants of financial distress. Exploring the R package, Bibliometrix® demonstrates its efficacy as a powerful tool for science mapping.

Surviving at a Falling Transportation Industry with the Help of Emotional Relationship with your Customers

Introduction Public intercity transportation is an example of a rapidly evolving industry. In developing countries, we observe the increasing popularity of airlines, whereas bus lines start to lose their significance. Methods The successive bankruptcy of bus companies, which have made a large amount of investment and provided significant employment, is a case worth examining. This article offers a case study from the Turkish public intercity transportation industry in which a bus company distinguishes itself by becoming a love brand with the relationship it establishes with its customers. The case shows that the emotional relationship established during the ups and downs of sectors have become insurance that protects companies during the downturn. Results To support our argument, we estimated the occupancy rates of bus companies based on characteristics such as ticket price, travel time, existence of catering service, social media interaction, and year of establishment. We found that the significant variables explaining occupancy rates are the companies' founding year and positive social media interaction frequency. Conclusion In an estimation where even the price is not a significant variable at the 0.01 level, the significance of the above-mentioned variables shows that relationship-based dynamics can be important demand determinants in a conventional transportation sector.

Analisis Financial Distress dengan Menggunakan Metode Altman Z-Score pada PT. Cahaya Bintang Medan Tbk

This research aims to determine and analiyze the Altman Z-Score mothod in assessing the level of bankruptcy PT. Cahaya Medan Tbk for The 2018- 2021 period and to provide evidence that the altman Z-score method is effectively used in assessing the level of company bankruptcy with a relatively reliable level of precision and accuracy at PT.Cahaya Bintang Medan Tbk for the 2018-2021 period. The type of research used is quantitative descriptive analysis, namely by collecting, clarifying, analyzing and interpreting data obtained from the company so that it can provide a picture of the actual situatuin the calculation technique used in this reseatch is the Altman Z-Score model formula. Based on the results of calculations using the modified Altman Z-Score method from the 2018-2021 period, it shows that PT. Cahaya Bintang Medan Tbk is in the safe zone or safe because the average Z-Score value is above 2,60 or Z2,60

Otomotif Disaat Masa Pandemi Covid-19 Dengan Model Altman Z-Score

This study aims to ascertain the financial condition and anticipate bankruptcy of several automotive industry companies during the Covid-19 outbreak. PT Astra International Tbk, PT Indomobil Sukses Internasional Tbk, PT Gajah Tunggal Tbk, and PT Astra Otoparts Tbk became the population in this study. This study also describes the company's financial performance, analyzes financial ratios to distinguish healthy and unhealthy companies, and determines how the company's financial performance and health in 2020-2022. Primary data is the company's financial statements from 2020-2022. Secondary data are journals and articles that support this research. The research method is a quantitative method based on the formulas in the Altman Z-Score theory. The results showed that the financial condition of these companies was not always stable from year to year during the pandemic.

Financial Distress Analysis to Predict Company Bankruptcy Using the Modified Altman Method

Financial distress is a condition where the company experiences a decline in its financial condition before bankruptcy. To avoid this condition, the company must pay attention to its financial condition both in terms of its balance sheet and income statement using financial statement analysis techniques, such as the Altman model. The purpose of this study is to analyze the occurrence of Financial Distress to predict company bankruptcy using the Modified Altman method using 3 classification categories namely safe, gray, and distress. A quantitative approach was used in this study with a total population of all companies listed on the JII and the sample selection using a purposive sampling technique so that a sample of 13 companies was obtained. Based on the Altman Z-score analysis, the results show that: 8 companies are consistently in the Safe category for 5 years with a cut-off value> 2.9. Then, if analyzed as a whole, the mean value obtained from all companies is 5.7688> 2.9. This value illustrates that on average all companies listed on the Jakarta Islamic Index in 2018-2022 are in the safe category.

Analysis of the WeWork Bankruptcy Case

This paper use case analysis and strategy analysis methods for the bankruptcy of Softbank for more than $13 billion US dollars in 2018, and in 2022 to analyze the acquisition process of WeWork acquisition, the impact of WeWork bankruptcy, and Softbank's countermeasures. The analysis of this paper shows that the business pre-bankruptcy status and key factors are the key to the WeWork bankruptcy, and the post-bankruptcy impact also needs to consider the association with the acquisition. Finally, the measures taken by WeWork for the company's bankruptcy restructuring were discussed, as well as the challenges and opportunities faced by Softbank after WeWork's bankruptcy. On the one hand, the slowdown in global economic growth and increased uncertainty have brought enormous pressure to Softbank. On the other hand, with the continuous advancement of technological innovation, Softbank Group can achieve sustained growth by investing in emerging industries. This paper provides theoretical and practical references for theoretical research and practice in related fields. This paper reminds investors to understand the company's financial situation and business model during the domestic acquisition process. Attention should also be paid to the risk management after the acquisition.

Crisis resilience assessment and management of public utility companies

Currently, the most frequently used models for forecasting the probability of company bankruptcy in the housing and utilities sector lack accuracy. The hypothesis is put forward that crisis resilience of a company can be assessed based on its adaptive capabilities. The paper aims to construct a more accurate compared to the known regression model for predicting bankruptcies, as well as develop models for assessing the quality of crisis adaptation management at public utility companies allowing for the stakeholders’ interests and peculiarities of their interface. The methodological basis of the study consists of the theory of crisis management and a stakeholder approach. The methods include multiple regression analysis, stakeholder mapping, sociological survey, and expert assessments. The evidence comes from the accounting and statistical reporting of 49 public utility companies, materials of arbitration cases, survey results of 33 heads of organisations obtained in the period from February to March 2023. The theoretical developments are implemented within the empirical studies of public utility companies. To improve crisis adaptation and resilience of public utility companies the findings recommend to launch staff training programmes, establish mechanisms for horizontal intra-sectoral connections and maintain cooperation at the level of public authorities in order to control investments in the housing and utilities sector.