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Purpose This paper aims to investigate the difference between the impacts of indicators of trade barriers (TBs) on bankrupt enterprises (BEs), new enterprises (NEs) and other enterprises (OEs). Design/methodology/approach The paper has used a multiple-step approach. At the first stage, the initial data has been collected from interviews with 164 top managers of SMEs in West Azerbaijan in Iran during two periods of 2013–2015 and 2017–2019. At the second step, multiple correspondence analysis has been used to summarize the relationships between variables and construct indices for different groups of TBs. Finally, the generalized structural equation model method was used to examine the impact of export barriers. Findings The results showed that the political legal index is the main TBs for BEs and NEs, but it had a more significant impact on BEs; the financial index was the second major TBs factor for BEs, while OEs did not have a problem in performance index, and the financial index was classified as a minor obstacle for them. All indicators of marketing barriers (except production index) had a negative and significant effect on all enterprises; the most important TBs for NEs was the information index. Originality/value The results indicated that if enterprises have a strong financial system and function, they can lessen the impact of sanctions and keep themselves in the market.

Objective : to propose a new vision of the terms “bankrupt”, “bankruptcy”, “bankruptcy of legal entities”, “non-creditworthiness” and “insolvency”, corresponding to the current situation of counteracting sanctions and developing import substitution in the Russian economy. Methods : abstract-logical, comparative law studies, interpretation of law, theoretical-legal modeling. Results : the concepts of “bankrupt”, “bankruptcy” and “insolvency” were summarized and critically evaluated. The author compared stages of bankruptcy and exit from insolvency of legal entities in Russia with the essence of the “insolvency” and “bankruptcy” concepts. The key features of the neoclassical, Keynesian, and institutional approaches were compared with bankruptcy legislation in the Russian Federation. As a result, the refined concepts of “bankrupt”, “bankruptcy”, “bankruptcy of legal entities”, “non-creditworthiness” and “insolvency” were proposed. Scientific novelty : the originality of the proposed concepts of “bankrupt”, “bankruptcy” and “bankruptcy of legal entities” within the framework of the neoclassical approach consists in defining a new boundary of the bankruptcy completion. The novelty of the Keynesian approach consists in the proposal to take into account the state interests by introducing a bankruptcy moratorium for companies that are particularly important to the state. Under the institutional approach, it is proposed to take into account the interests of society in addition to the state interests. Practical significance : the proposed concepts cover a wide range of possible development of bankruptcy institutions: procreditor, pro-government, social, and compromise approaches. All of them will help reduce the number of bankruptcies in Russia. At the same time, the legislator, taking into account the specifics of their application, can choose the option that best suits the future development of the Russian state.

This paper analyzed the strategy optimization problem of networked evolutionary games (NEGs) with bankruptcy mechanism. The main objective was to design a state-feedback control such that the number of bankrupt players is minimized. First, an algebraic expression was formulated for this type of NEGs by the semi-tensor product of matrices, based on which the sets of profiles with different numbers of bankrupt players are defined. Second, a desired profile set in which the number of bankrupt players is no higher than a given value was obtained, and the convergence region of this set was calculated. Third, for any profile in the convergence region of the desired set, we propose a controller design method to minimize the number of bankrupt players. Finally, an example is given to illustrate the validity of our results.

The aim of this article is to prove the key role of the structure of the research sample used for accuracy determining on the accuracy of bankruptcy models. The creators of these models report the accuracy usually in the range of 60 to 90%. The authors of this article claim that these values are inaccurate and misleading.  The real I. type error should be detected on a sample where obvious features of financial default were eliminated. The research tested more than 1200 of thriving businesses and also 270 businesses in future bankruptcy. The research has determined real current accuracy of selected three bankruptcy models on the standard sample of Czech businesses amounting 67.77%, 62.27% and 74.36%. This confirmed hypothesis no. 1, which says that actual accuracy of bankruptcy model is lower than original accuracy indicated by model makers. An accuracy of 58.70%, 61.59% and 65.94% was measured on a sample where businesses with obvious features of financial distress were eliminated. Due to the modification of the test sample, the order of accuracy has changed. This confirmed hypothesis no. 2. The Index of Karas and Reznakova reached the highest overall accuracy of 80.31% including incorrect prediction of bankruptcy also.

Purpose This paper aims to introduce a new framework that helps to get an overview of contextual factors that influence the ability of small- and medium-sized enterprises (SMEs) to survive the economic crisis in a business cluster, as parts of a system. Design/methodology/approach The spatial autologistic model and the logit regression tree (RT) were applied to SME manufacturing companies localized in the business clusters of the Italian Marche region to explain interconnection among the actors of the network and their heterogeneous behavior with the environment. Findings The main findings of the application confirm that contextual influences are decisive in the definition of firm’s survival, explained through the presence of spatial dependence in bankruptcy analysis, validating the transmission effects of corporate bankruptcy within the business clusters in the Marche region. Originality/value The estimation of the logistic RT allowed to identify sub-systems, homogeneous with respect to crucial context variables, with different firms’ behaviors in terms of probability to survive in the system and relation to their environment. Therefore, a systemic approach is required to provide a better understanding of such kind of phenomena.

In episodes of significant banking distress or perceived systemic risk to the financial system, policymakers have often opted for issuing blanket guarantees on bank liabilities to stop or avoid widespread bank runs. In theory, blanket guarantees can prevent bank runs if they are credible. However, guarantee could add substantial fiscal costs to bank restructuring programs and may increase moral hazard going forward. Using a sample of 42 episodes of banking crises, this paper finds that blanket guarantees are successful in reducing liquidity pressures on banks arising from deposit withdrawals. However, banks' foreign liabilities appear virtually irresponsive to blanket guarantees. Furthermore, guarantees tend to be fiscally costly, though this positive association arises in large part because guarantees tend to be employed in conjunction with extensive liquidity support and when crises are severe.

PurposeThe purpose of this paper is to examine whether managers of bankrupt firms are more or less conditionally conservative in their financial reporting relative to non-bankrupt firms. The study further examines the cross-sectional differences in conditional conservatism among bankrupt and non-bankrupt firms.Design/methodology/approachThe study employs a sample of US firms to investigate conditional conservatism in firms that experience financial distress and go bankrupt relative to non-stressed non-bankrupt firms. The study also uses switching regression models to identify the drivers of the cross-sectional difference in conditional conservatism among bankrupt and non-bankrupt firms.FindingsEmpirical results show that bankrupt firms are timelier in recognizing bad news than good news when compared to non-bankrupt firms. The higher level of conditional conservatism in bankrupt firms is mainly driven by their higher levels of leverage and tax-reduction incentives. The cross-sectional analyses show that these results largely hold for more leveraged firms and firms with higher tax costs. Taken together, these results suggest that the conservative tendency of managers of bankrupt firms can stem from the agency problem between lenders and managers and from tax-decreasing motivations.Originality/valueThe novelty of the authors’ research stands in studying the drivers of the cross-sectional differences in conditional conservatism between bankrupt and non-bankrupt firms and specifically, the demonstration that taxation also induces conditional conservatism in the setting of ex post bankrupt firms.

This work is framed in the research of business failure. We examine a method of analyzing the dynamics of financial failure. The authors examine a method of analyzing the dynamics of financial failure, because our goal is to analyze how the economic and financial indicators show the risk of failure in a group of companies. Using a sample of 163 companies declared bankrupt or dissolved, the authors show how to depict company trajectories of behavior and movement to terminal failure. They analyze these trajectories to find and describe empirical evidence of the different dynamics of bankruptcy. The authors also show that the estimation of failure risk is more accurate when these different failure trajectories are defined. In conclusion, the authors can see that there are different failure trajectories. One can use these different trajectories to identify more efficiently the indicators warning of the failure risk of the companies analyzed.

The issue of enterprise in bankrupt or financial health as a whole is still very actual topic not only in Slovakia but also in abroad. Works dealing with the enterprise in bankruptcy have already appeared in the 1930s of the 20th century. Bankrupt of enterprise affect all subject in relationship with this enterprise. Financial experts were looking for the ways for enterprise bankrupt prediction. This article is based on the searching for key factors that could indicate the enterprise in bankrupt in Slovak conditions. This article tries to work with financial variables from the area of financial health assessment of enterprise and works with the sample of Slovak enterprises. This sample includes 8,522 financial statements of enterprises in 2016. According to several relevant decisions rules, for example, the value of equity or equity debt ratio, enterprises are divided into two categories – bankrupt enterprises and creditworthy enterprises. Subsequently, this article tries to find statistically significant financial variables that could indicate involving enterprises in these two categories and works with several statistical methods for searching significant relationship between variables and the tightness of relations between them. As a main statistical method, Pearson´s correlation coefficient is used, which is supported by correlation matrices. In addition, it is necessary to test an existence of outliers in the sample of enterprises. Existence of outliers is tested by the Grubbs test of outliers.