An Academic at University of Bahrain Develops a New Theoretical Model on Firm Dynamics and Bankruptcy Processes

Sakhir – University of Bahrain (Khadijah Abdusalem)
31 January 2022

The Journal of Forecasting of Wiley that publishes leading research on forecasting has published a study titled “Firm dynamics and bankruptcy processes: A new theoretical model”, conducted by Dr. Gokhan Bora Aktan, Associate Professor of Finance at the College of Business Administration, University of Bahrain, alongside, Dr. Bruce Burton of University of Dundee, UK and Dr. Saban Celik of Izmir Katip Celebi University, Turkey.

The researcher developed and introduced a new theoretical model that relates firm dynamics to bankruptcy processes on both univariate and multivariate bases. The study results provided a road map to investors and analysts for selecting the most appropriate default prediction variables and identifying the role of each in the prediction process. Noting that the model is also shown to be useful for firm rating in general and credit approval decisions. The univariate-based estimation results indicate that the variables determined via the model successfully differentiate distressed firms from non-distressed and other firm.

On his part, Dr. Hatem Masri, Dean of College of Business Administration, praised Dr. Gokhan Bora Aktan for his excellent research work at the college. Dr. Bora is also a Research Fellow at EuroMed Research Business Institute, Emerging Markets Group. His current research activity focuses on emerging capital markets, global investments, corporate valuation, energy, and security issues. He has also published papers in top journals such as The European Journal of Finance, International Review of Economics and Finance, International Journal of Forecasting, Economic Research, Environmental Science and Pollution Research.

Not to mention, Dr. Bora is the Founding Editor of Journal of Islamic Financial Studies of the University of Bahrain and is a member of some professional bodies such as American Finance Association, The Financial Management Association International, and The Society for Financial Econometrics, among others. He has served several international scholarly journals on the Editorial Boards such as Qualitative Research in Financial Markets, Security and Defence Quarterly, Journal of Public and Municipal Finance, Journal of Security and Sustainability Issues.

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