Corporate legality, illegality, irresponsibility wrongdoing & corruption

Company’s distress and legality under the magnifying glass of artificial intelligence: the contribution of decision trees to identify best practices

Sergio Barile, Irene Buzzi, Ernesto D'Avanzo

The aim of the study is to examine whether and how artificial intelligence (AI) may facilitate the joint comprehension of corporate distress and corporate legality. The main subjects of investigation are both represented by the valuation of company’s distress and by the legality rating (LR), which is a measure of the company’s degree of legality). LR’s adoption allows firms to benefit from some advantages when accessing to credit. For this reason, LR is related to the company’s creditworthiness, and by consequence, to the company’s distress.

#artificial intelligence #company’s distress #decision tree #legality rating #Z score