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This study aims to develop a comprehensive insolvency model tailored to Islamic banks, ensuring alignment with Shariah principles throughout pre-insolvency, bankruptcy and post-bankruptcy stages.

The research adopts a qualitative research method, using a desktop research approach. Primary sources and secondary sources are examined to gather information and draw conclusions.

This study presents a comprehensive insolvency model designed for Islamic banks, rooted in Shariah principles. The model covers pre-insolvency, bankruptcy (taflis) and post-bankruptcy stages, incorporating key Shariah parameters to ensure adherence to Islamic finance principles. It addresses challenges such as adapting to dynamic financial landscapes and varying interpretations of Shariah principles. Notably, the model recognizes the separate legal personality of Islamic banks and emphasizes transparency, fairness and compliance with religious obligations. In the post-bankruptcy stage, directors are urged to voluntarily settle remaining debts, aligning with ethical and Shariah-compliant standards.

The study contributes to the stability and growth of Shariah-compliant financial systems by extending insolvency principles to Islamic banks, providing a foundation for future research and policymaking specific to this context.

This study aims to investigate the effect of accounting conservatism and business strategies as mitigating tools for bankruptcy risk. It determines the association among these factors and provides insights into the effectiveness of accounting discretion and business strategies in decision-making.

The study uses a sample of 83 nonfinancial listed firms in ASE for the period from 2013 to 2019. Bankruptcy risk is measured using the Altman Z-score (1968). Accounting conservatism is measured using the accrual-based approach, and optimal business strategies are identified through cluster analysis.

The results indicate that accounting conservatism has a significant negative effect on bankruptcy risk. Increased application of accounting conservatism practices leads to a decrease in the level of bankruptcy risk. However, the type of business strategy adopted by firms does not have a significant impact on bankruptcy risk, suggesting that firms are not effectively implementing their strategies to mitigate this risk.

This study focuses on nonfinancial listed firms in the ASE, limiting the generalizability of the findings to other contexts. The study's findings contribute to the understanding of the role of accounting conservatism in reducing bankruptcy risk but highlight the need for further research on the effectiveness of business strategies in mitigating this risk.

This study lies in understanding of the role of accounting discretion in financial evaluations and emphasizes the importance of accounting conservatism as a tool for mitigating bankruptcy risk. The study's insights provide valuable guidance to practitioners, regulators and researchers in this field.

This paper aims to propose an analysis of financial regulation practices, identified thanks to an extensive benchmark carried out in eight European professional sports leagues.

Between 1970 and 2018, 81 French football clubs went bankrupt. The paper proposes an analysis of financial regulation practices in eight European professional sports leagues to enhance the prevention of bankruptcy of French football clubs. Three research questions are addressed: What are the financial and accounting disclosure practices in the main professional leagues? What assessment tools are employed to evaluate the financial risk and budgetary feasibility? What financial support measures exist for clubs and how are insolvency proceedings initiated by clubs? To identify financial regulation practices in professional sport, a selection of leagues was made based on their economic importance, specific regulatory tools used, and their approach to financial difficulties and the handling of insolvency proceedings.

Through an examination of financial regulation practices in other leagues, three main findings are highlighted: The significance of required financial documents and deadlines varies depending on the competition organizer; some leagues utilize ratio-based assessments rather than relying solely on opinions from financial oversight bodies; certain leagues have established assistance processes for troubled clubs as opposed to punitive measures resulting in administrative regulations.

This study proposes new financial regulation modalities to prevent the bankruptcy of French football clubs. Firstly, a reform management control is suggested. Secondly, the engagement of stakeholders in bankruptcy prevention is recommended. Lastly, the implementation of a dedicated policy to support clubs facing difficulties is proposed.

The French football federation and the professional league are important actors in the European football. Many bankruptcies are noted in these championships and since the COVID crisis, the financial situation of the clubs has deteriorated, pointing to a strong risk of bankruptcy in the coming years.

The primary purpose of this paper is to identify the so-called core authors and their publications according to pre-defined criteria and thereby direct the users to the fastest and easiest way to get a picture of the otherwise pervasive field of bankruptcy prediction models. The authors aim to present state-of-the-art bankruptcy prediction models assembled by the field's core authors and critically examine the approaches and methods adopted.

The authors conducted a literature search in November 2022 through scientific databases Scopus, ScienceDirect and the Web of Science, focussing on a publication period from 2010 to 2022. The database search query was formulated as “Bankruptcy Prediction” and “Model or Tool”. However, the authors intentionally did not specify any model or tool to make the search non-discriminatory. The authors reviewed over 7,300 articles.

This paper has addressed the research questions: (1) What are the most important publications of the core authors in terms of the target country, size of the sample, sector of the economy and specialization in SME? (2) What are the most used methods for deriving or adjusting models appearing in the articles of the core authors? (3) To what extent do the core authors include accounting-based variables, non-financial or macroeconomic indicators, in their prediction models? Despite the advantages of new-age methods, based on the information in the articles analyzed, it can be deduced that conventional methods will continue to be beneficial, mainly due to the higher degree of ease of use and the transferability of the derived model.

The authors identify several gaps in the literature which this research does not address but could be the focus of future research.

The authors provide practitioners and academics with an extract from a wide range of studies, available in scientific databases, on bankruptcy prediction models or tools, resulting in a large number of records being reviewed. This research will interest shareholders, corporations, and financial institutions interested in models of financial distress prediction or bankruptcy prediction to help identify troubled firms in the early stages of distress.

Bankruptcy is a major concern for society in general, especially in today's economic environment. Therefore, being able to predict possible business failure at an early stage will give an organization time to address the issue and maybe avoid bankruptcy.

To the authors' knowledge, this is the first paper to identify the core authors in the bankruptcy prediction model and methods field. The primary value of the study is the current overview and analysis of the theoretical and practical development of knowledge in this field in the form of the construction of new models using classical or new-age methods. Also, the paper adds value by critically examining existing models and their modifications, including a discussion of the benefits of non-accounting variables usage.

European Parliament adopted a new directive on gender balance in corporate boards when by 2026, companies must employ 40% of the underrepresented sex into non-executive directors or 33% among all directors. Therefore, this study aims to analyze the impact of gender diversity (GD) on board of directors and the shareholders’ structure and their impact on the likelihood of company bankruptcy during the COVID-19 pandemic.

The data sample consists of 1,351 companies for 2019 and 2020, of which 173 were large, 351 medium-sized companies and 827 small companies. Three bankruptcy indicators were tested for each company size, and extreme gradient boosting (XGBoost) and logistic regression models were developed. These models were then cross-validated by a 10-fold approach.

XGBoost models achieved area under curve (AUC) over 98%, which is 25% higher than AUC achieved by logistic regression. Prediction models with GD features performed slightly better than those without them. Furthermore, this study indicates the existence of critical mass between 30% and 50%, which decreases the probability of bankruptcy for small and medium companies. Furthermore, the representation of women in ownership structures above 50% decreases bankruptcy likelihood.

This is a pioneering study to explore GD topics by application of ensembled machine learning methods. Moreover, the study does analyze not only the GD of boards but also shareholders. A highly innovative approach is GD analysis based on company size performed in one study considering the COVID-19 pandemic perspective.

This study investigates the impact of temporary employment on various forms of financial distress for firms during the COVID-19 pandemic.

The authors apply a logit model to evaluate the differences in the probabilities of experiencing financial distress for firms with or without temporary reemployment and for firms with different intensities of temporary workers. As an additional test, an ordinal logistic model is applied to reflect different degrees of financial distress.

Our main results indicate that firms with temporary employment are more likely to experience financial distress than firms without temporary employment, regardless of the severity of financial distress. Among firms with temporary employment, our analysis suggests that a firm’s likelihood of experiencing financial distress depends on its relative share (quantile) of temporary workers.

Our findings provide valuable insights for evaluating the impact of temporary employment on firms’ vulnerability during the COVID-19 crisis and suggest strategies for firms to enhance resilience to similar future crises.

Our study is the first one that explores the relationship between temporary employment and financial distress. Firms around the world have been pursuing flexible labor to improve resilience and firm performance. The pandemic may further ramify this trend, creating a future “new normal” regarding employment relationships, job segmentation and gender equality in the job market. This article adds a new dimension to the evaluation of the new normal, which may help firms evaluate the consequences of temporary employment, especially in times of crisis.

The purpose of this paper is to examine the impact of bankruptcy reform in the year 2016 on the relation between leverage and firm performance for Indian firms, separately for business group and standalone firms.

Fixed effects panel regression is used to understand the role of bankruptcy reform on firm-level data to examine the relationship between leverage and firm performance after controlling for size, growth, age, liquidity and promoter shareholding. The authors also apply the generalized method of moments (GMM) to control for the endogeneity concerns.

The authors show that the introduction of the insolvency and bankruptcy code (IBC) positively moderates the relation between leverage and firm performance such that the extent of negative relation between leverage and firm performance is less in the post-IBC period. The positive impact of IBC on the relation between leverage and firm performance holds only for firms not affiliated to business groups and for firms with higher debt in their capital structure.

The study’s findings will help the regulators appreciate the effectiveness of bankruptcy reforms resulting from IBC implementation in terms of sound bankruptcy process and leading to safeguard the interests of minority shareholders.

The authors provide the only study to examine the role of bankruptcy law in moderating the relation between leverage and firm performance across a sample of business group and standalone firms.

The purpose of this study is to develop a model of a starting situation for relationship initiation in turbulent business networks.

The study is designed as an extreme single case study that takes its point of departure in a company’s bankruptcy in the Swedish automotive industry.

This study illustrates how a new business relationship can start from a resource combination previously controlled by one actor (i.e. a single company) in a turbulent business network, thereby bringing nuances to the common understanding that new relationships start in stable business networks where resource combinations are developed between actors in established business relationships.

Previous studies have stated that the development of a mutual orientation between actors leads to the formation of a business relationship. The business relationship then leads to resource adaptations between the two companies. The developed model, however, illustrates that this pattern can be reversed in situations of turbulence. Hence, previously adapted resources might lead to the formations of a business relationship. Based on this observation, the authors argue that there are reasons to question if previous models of business relationship initiation and development in business networks are adequately equipped for analysis in turbulent business networks.

This study aims to develop a robust predictive model for anticipating financial distress within Pakistani companies, providing a crucial tool for proactive economic turbulence management.

To achieve this objective, the study examines a comprehensive data set comprising nonfinancial firms listed on the Pakistan Stock Exchange from 2005 to 2022. It investigates 23 financial ratios categorized under profitability, liquidity, leverage, asset efficiency, size and growth.

The study reveals that financial ratio indices are more effective in forecasting financial distress compared to individual ratios. These indices achieve impressive accuracy rates, ranging from a robust 93.90% in the first year leading up to bankruptcy to a commendable 73.71% in the fifth year. Furthermore, the research identifies profitability, liquidity, leverage, asset efficiency, size and growth as pivotal indicators for financial distress prediction.

This research underscores the utility and practicality of financial ratio indices, offering a comprehensive perspective on risk assessment and management. In conclusion, this pioneering study provides valuable insights into financial distress prediction, highlighting the enhanced information capture made possible by financial ratio indices. It equips stakeholders in the Pakistan Stock Exchange with an effective means to proactively address financial risks.

The global financial crisis (GFC) of 2007–2008 had far-reaching consequences for the global economy, triggering widespread economic turmoil. We use the event-study method to investigate whether investors priced the effect of significant events before the Lehman Brothers' bankruptcy in European and Asia-Pacific banks. Abnormal returns on the event days range from −4.32% to 5.03% in Europe and −5.13% to 6.57% in Asia-Pacific countries. When Lehman Brothers went bankrupt on September 15, 2008, abnormal returns averaged the lowest at −4.32% in Europe and −5.13% in Asia-Pacific countries. The significant abnormal returns show that Lehman Brothers' collapse was a turning point, and investors paid attention to the precrisis events as warning signs of the oncoming crisis.