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We examine the role of firms' government connections, defined by government intervention in CEO appointment and the status of state ownership, in determining the severity of financial constraints faced by Chinese firms. We demonstrate that government connections are associated with substantially...
Persistent link: https://www.econbiz.de/10011269077
default risk--those with a bankruptcy history. On average, over one-fifth of personal bankruptcy filers receive at least one …Are consumers who have filed for personal bankruptcy before excluded from the unsecured credit market? Using a unique … offer in a given month, with the likelihood being even higher for those who filed for bankruptcy within the previous two …
Persistent link: https://www.econbiz.de/10009024044
We analyze the impact of bad-tail risks on managerial pay functions, especially the decision to pay managers in stock or in options. In contrast to conventional wisdom, we find that options are often a superior vehicle for limiting managerial incentives to take bad-tail risks while providing...
Persistent link: https://www.econbiz.de/10011268460
bankruptcy filing under Chapter 7; the other type of credit mimics student loans in the United States and the default option …We analyze the interactions between two different forms of unsecured credit and their implications for default behavior … of young U.S. households. One type of credit mimics credit cards in the United States and the default option resembles a …
Persistent link: https://www.econbiz.de/10010784146
This paper assesses the role that monetary policy plays in the decision to default using a General Equilibrium model … of which depends on monetary policy. The decision to default is endogenous and depends on the relative value of the … collateral to face value of the loan. Default results in foreclosure, higher borrowing costs, inefficient investment and a …
Persistent link: https://www.econbiz.de/10010784164
so does the riskiness of the pool of borrowers, leading to higher default rates in the private market for student loans …
Persistent link: https://www.econbiz.de/10010892304
Is the current mix of tax preferences for employer-sponsored pensions and individual retirement saving in the U.S. delivering the best possible retirement-preparedness across and within generations? Using data from the triennial Survey of Consumer Finances for 1989 through 2013, cohort-based...
Persistent link: https://www.econbiz.de/10011255342
Margin regulation raises two policy concerns. First, an alignment of margins to volatility can amplify procyclicality, leading to a build-up of excess leverage in good times and a forced deleverage in bad times. Second, competition among central counterparties (CCPs) can result in lower margin...
Persistent link: https://www.econbiz.de/10011075125
Persistent link: https://www.econbiz.de/10005379712
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