A Systems Analysis of Drivers of Individual Bankruptcies

Authors

Lei Shi, University of WollongongFollow
John Evans, Centre for Analysis of Complex Financial Systems
Yifei Li, University of WollongongFollow

RIS ID

130156

Publication Details

Shi, L., Evans, J. & Li, Y. (2018). A Systems Analysis of Drivers of Individual Bankruptcies. Economic Papers, 37 (4), 390-398.

Abstract

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.