The Reliability Of Corporate Zero-Default Debt

Abstract

The Topic Of Corporate Bankruptcy Has Been Explored Through Measurement And Modeling, But The Question Arises Whether It Is Better To Predict The Bankruptcy Or To Prevent It From Happening. The Prevailing Techniques Focus On Predicting Bankruptcy, But A Prevention Model Called Corporate Debt Safe Buffer Has Been Proposed. This Model Was Tested On Non-Financial Firms Listed In DJIA30 And NASDAQ100 From 1999 To 2016, And The Results Validated The Model.