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Meeting ID: 822 1343 0695 | Passcode: 20241029 |
| Abstract: The study examines the financial performance and financial distress of the firms in the context of bankruptcy (interpreted as narrow definition of potential exit) using an inductive approach to data. The method uses the concepts of continuity and monotonicity coupled with the machine learning of XGBoost (Extreme Gradient Boosting) to examine the extent to which the performance and distress of firms facing bankruptcy stand out relatively to all other firms. While we do find some evidence of continuity and monotonicity, the paper points out the limitations of using a purely inductive approach to build bridges across the financial performance and financial distress, in the particular context of bankruptcy. |