The major success of fuzzy logic in the field of remote control opened the door to its application in many other fields, including finance. However, there has not been an updated and comprehensive literature review on the uses of fuzzy logic in the financial field. For that reason, this study attempts to critically examine fuzzy logic as an effective, useful method to be applied to financial research and, particularly, to the management of banking crises. The data sources were Web of Science and Scopus, followed by an assessment of the records according to pre-established criteria and an arrangement of the information in two main axes: financial markets and corporate finance. A major finding of this analysis is that fuzzy logic has not yet been used to address banking crises or as an alternative to ensure the resolvability of banks while minimizing the impact on the real economy. Therefore, we consider this article relevant for supervisory and regulatory bodies, as well as for banks and academic researchers, since it opens the door to several new research axes on banking crisis analyses using artificial intelligence techniques.

Following the calls from literature on bankruptcy, a parsimonious hybrid bankruptcy model is developed in this paper by combining parametric and non-parametric approaches.To this end, the variables with the highest predictive power to detect bankruptcy are selected using logistic regression (LR). Subsequently, alternative non-parametric methods (Multilayer Perceptron, Rough Set, and Classification-Regression Trees) are applied, in turn, to firms classified as either “bankrupt” or “not bankrupt”. Our findings show that hybrid models, particularly those combining LR and Multilayer Perceptron, offer better accuracy performance and interpretability and converge faster than each method implemented in isolation. Moreover, the authors demonstrate that the introduction of non-financial and macroeconomic variables complement financial ratios for bankruptcy prediction

Until the Great Recession, rescuing banks with taxpayers’ money had been the preferred way to deal with banking crises. The dramatic effects of these practices on the real economy highlighted that bailouts are not a sustainable method to resolve troubled banks going forward. As a result, a new regulatory framework has been proposed, forcing the financial industry to move from “bailout” to “bail-in.” Understanding the implications of such a change is key to ensuring the success of these new banking rules. This article aims to build up a comprehensive and unbiased set of research articles in order to draw conclusions about the current status of the academic literature in the field of capital and loss absorption requirements. A research agenda on the topic is also proposed. The methodological approach undertaken is based on ProKnow-C (Knowledge Development Process-Constructivist). We also contribute to the development of Proknow-C methodology by adding a cross-reference extension to the original framework. The results of our analysis point out that further research has to be undertaken on the subject of loss absorption requirements.

ResumenAnalizar los factores que influyen en la sostenibilidad es clave para llegar a alcanzarla. En base a la Teoría de los Recursos y las Capacidades (Grant, 1991), desarrollamos un modelo de gestión que determina los factores explicativos de la sostenibilidad de las instituciones microfinancieras (IMF). El modelo empírico se desarrolla aplicando análisis de componentes principales y regresión logística, sobre una muestra de 313 IMF, con 31 variables financieras agrupadas en seis componentes/factores que están teóricamente relacionadas con su autosuficiencia. Nuestros resultados muestran una relación significativa y positiva entre el tamaño y la eficiencia-productividad de las IMF con su sostenibilidad, presentando el factor riesgo de crédito una relación inversa con respecto a dicha sostenibilidad. Por tanto, sugerimos que las IMF que quieran continuar desarrollando su actividad bajo un enfoque de autosuficiencia, deben fomentar una estrategia de gestión orientada hacia: (1) el aumento de la eficiencia-productividad, (2) el control exhaustivo del riesgo de crédito y (3) el incremento del tamaño para la consecución de economías de escala. La capacidad predictiva del modelo es alta, con un área bajo la curva ROC (AUC) del 89.7%.AbstractThe analysis of the factors that influence sustainability is the key to achieving it. Based on the Theory of Resources and Capabilities (Grant, 1991), a management model that determines the explanatory factors of the sustainability of microfinance institutions (MFI) is developed. The empirical model is constructed by applying a principal component and logistic regression analysis using a sample of 313 MFI, with 31 finance variables, grouped into 6 components/factors that are theoretically associated with self-sufficiency. The results obtained showed a significant and positive relationship between size and the efficiency-productivity of the MFI and their sustainability, with the credit risk factor having an inverse relationship as regards that sustainability. Thus, it may be suggested that the MFI that wish to continue developing their activity using a self-sufficiency approach must promote a management strategy oriented towards: (1) an increase in efficiency-productivity, (2) the exhaustive control of credit risk and, (3) the increase in size in order to achieve economies of scale. The predictive capacity of the model is high, with an area under the ROC curve of 89.7%

University students consume live music; however, almost 40% declare that they have never attended a flamenco show, an intangible heritage of humankind. Numerous studies have shown that cultural capital and socioeconomic profile, among other factors, are variables that influence cultural consumption, and therefore, cultural sustainability. Considering the relationship between several variables, this paper pursues a double objective. On the one hand, identifying the factors that influence attendance at flamenco shows, and on the other, proposing a predictive model that quantifies the likelihood of an individual attending a flamenco show. To this end, we analyse flamenco consumption by means of a survey conducted on 452 university students, using Multilayer Perceptrom (a non-parametric model), a methodology based on an artificial neural network. Our results confirm the importance of cultural capital, as well as personal and external factors, among other. The findings of this research work are of potential interest for management and planning of cultural events, as well as to promote cultural sustainability.

The financial structure of megaprojects, known in the literature as project finance, is characterized by the creation of a legally independent project company financed with a concentrated equity ownership and a high level of non-recourse debt. Research in this field may yield new ideas and theories about the existing theoretical framework on capital structure, stakeholder management and risk management. A case-study is analyzed in this paper: the financial performance of the first metro line in Seville (Spain). In spite of previous cost overruns in the construction stage, the present operation stage is considered successful from the point of view of social and financial profitability, whereby the risks have been theoretically transferred to stakeholders, as defined by Value for Money considerations.The objective of this study involves: first to determine whether this megaproject meets the expectations for which it was created in terms of hope of return of the shareholders, and the expectations of the economic and financial feasibility under a change of subsidy policies; and secondly to determine whether the conditions remain for not including the investment as public debt. This issue is crucial in a budgetary constraint context for the planning of future metro lines. By taking this first experience into account, this article also provides information for potential participants in the projects of the new metro lines, which are currently in the planning stage