An employee's annual earnings fall by 10% the year her firm files for bankruptcy and fall by a present value of 67 …. Compensating wage differentials for this “bankruptcy risk” are approximately 2.3% of firm value for a firm whose credit rating … falls from AA to BBB, about the same magnitude as debt tax benefits. Thus, wage premia for expected costs of bankruptcy are …

An employee's annual earnings fall by 10% the year her firm files for bankruptcy and fall by a cumulative present value … liquidated. Compensating wage differentials for this “bankruptcy risk” are approximately 2.3% of firm value for a firm whose … bankruptcy are of sufficient magnitude to be an important consideration in corporate capital structure decisions …

This paper quantifies the “human costs of bankruptcy” by estimating employee wage losses induced by the bankruptcy … wages begin to deteriorate one year prior to bankruptcy. One year after bankruptcy, the magnitude of the decline in annual … wages is 30% of pre-bankruptcy wages. The decrease in wages persists (at least) for five years post-bankruptcy. The present …

An employee's annual earnings fall by 13% the year her firm files for bankruptcy, and the present value of lost … earnings from bankruptcy to six years following bankruptcy is 87% of pre-bankruptcy annual earnings. More worker earnings are … lost in thin labor markets and among small firms. Ex ante compensating wage differentials for this "bankruptcy risk" are …

This paper quantifies the “human costs of bankruptcy” by estimating employee wage losses induced by the bankruptcy … wages begin to deteriorate one year prior to bankruptcy. One year after bankruptcy, the magnitude of the decline in annual … wages is 30% of pre-bankruptcy wages. The decrease in wages persists (at least) for five years post-bankruptcy. The present …

An employee's annual earnings fall by 10% the year her firm files for bankruptcy and fall by a cumulative present value … liquidated. Compensating wage differentials for this "bankruptcy risk" are approximately 2.3% of firm value for a firm whose … bankruptcy are of sufficient magnitude to be an important consideration in corporate capital structure decisions …