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We study the impact of the COVID-19 recession on capital structure of publicly listed U.S. firms. Our estimates suggest leverage (Net Debt/Asset) decreased by 5.3 percentage points from the pre-shock mean of 19.6 percent, while debt maturity increased moderately. This de-leveraging effect is...
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preparedness of insolvency systems is measured according to a newly designed indicator that includes five dimensions of the … insolvency and restructuring regime (out-of-court restructuring, hybrid restructuring, reorganization, liquidation, and the … those countries need to step up efforts to improve their insolvency systems …
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Because of limited liability, insolvent banks have an incentive to roll over bad loans, in order to hide losses and gamble for resurrection, even though this is socially inefficient. We suggest a scheme that regulators could use to solve this problem. The scheme would induce banks to reveal...
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