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A Systems Analysis of Drivers of Individual Bankruptcies
Author(s) -
Shi Lei,
Evans John,
Li Yifei
Publication year - 2018
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/1759-3441.12229
Subject(s) - default , bankruptcy , systemic risk , business , economics , actuarial science , finance , financial crisis , macroeconomics
In this paper, we use a systems‐based analysis to identify the systemic drivers of individual bankruptcies in Australia and compare the results with a similar analysis of global corporate credit defaults that found uncontrollable factors were significant. We include both macroeconomic factors and microcharacteristics. The results show that both macroeconomic factors and microcharacteristics are important systemic drivers of individual bankruptcies, and further that uncontrollable factors are very significant drivers of individual bankruptcies.