Dec 2023
The IUP Journal of Financial Risk Management
Bankruptcy Prediction Models for NSE-Listed Firms: A Comparative Analysis
According to the Insolvency and Bankruptcy Board of India, the number of companies filing for insolvency witnessed a 30.29% jump to 3,312 in the fourth quarter of 2019. The increasing rate of company failures has prompted efforts to provide better measures to predict bankruptcy well in advance. The objective of the current study is to predict the bankruptcy of firms listed on the National Stock Exchange (NSE) using the data for three years prior to bankruptcy. The data consists of financial variables (categorized into profitability, solvency, liquidity, and activity ratios) and non-financial macroeconomic variables. To achieve this objective, the study uses predictive models such as Altman Z-score, logistic regression, support vector machine (SVM), ensemble methods, artificial neural networks, etc. It also compares the accuracy with performance measures to find the best model for the prediction of financial distress in Indian firms. The findings suggest that logistic regression model has relatively higher (96%) bankruptcy prediction ability, and SVM has the highest model accuracy of 88.54% and demonstrates great ability in predicting healthy companies.
Changing Role of Auditors and CFOs vis-a-vis Risk Management: A Survey Study
The aim of the study is to bring out the emerging and changing role of auditors and chief financial officers (CFOs) in addressing risk management. A questionnaire survey consisting of two themes was mailed to the respondents. Theme 1 focused on understanding the risk management system of organizations and what the underlying changing risk landscape means for them. The second theme centered broadly on governance and sustainability issues facing organizations. The findings indicate that CFOs and auditors do ensure that an effective risk management program is embedded in every function so as to make it an integral part of the company's regular decision-making process. The implication is that managing risk in organizations has become an indispensable part of good corporate governance.
Green Blockchain Initiatives for Sustainable Cryptocurrencies: An Overview
Due to its promise of transparency, security, and decentralization, blockchain technology has seen extensive adoption across a wide range of businesses. However, the energy-intensive nature of typical blockchain networks, especially those based on proof of work (PoW) consensus algorithms, creates serious environmental issues. This paper reviews the developing notion of "green blockchain", with emphasis on cryptocurrencies, concentrating on the principles, technology, projects, and issues connected with establishing environmental-friendly and sustainable decentralized systems. The paper seeks to add to the discussion on sustainable blockchain development by assessing the existing environment and future potential.
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