Similar Search Results

An Economic Analysis of Transnational Bankruptcies

Bebchuk, Lucian Arye - 2000

territoriality' -- in which assets are adjudicated by the jurisdiction in which they are located at the time of the bankruptcy …

Persistent link: https://www.econbiz.de/10012471197

Can Output Losses Following International Financial Crises be Avoided?

Dooley, Michael P. - 2000

Recent financial crises in emerging markets have been followed by temporary but substantial losses in output. This paper explores the possibility that threats of such losses are the dominant incentive for repayment of international debt. In this environment private debtors and creditors have...

Persistent link: https://www.econbiz.de/10012471243

Reorganization

Hall, Robert E. - 1999

One of the productive activities engaging the work force is reorganizing. When factors of production are better matched, productivity is higher. The probabilistic matching model of Diamond, Mortensen, and others provides a way to make the idea of reorganization precise. Because the flow of...

Persistent link: https://www.econbiz.de/10012471607

Real and Financial Decisions of a Firm with Bankruptcy and Default : An Integration

Hayashi, Fumio - 1983

rich menu of tax rates and explicitly incorporates bankruptcy and default. The firm's multi-period optimization problem is …

Persistent link: https://www.econbiz.de/10012478005

LDC Borrowing with Default Risk

Sachs, Jeffrey - 1982

This paper presents a theoretical model to describe the effects of default risk on international lending to LDC sovereign borrowers. The threat of defaults in international lending is shown to give rise to many characteristics of the syndicated loan market: (1) quantity rationing of loans; (2)...

Persistent link: https://www.econbiz.de/10012478182

Employee Costs of Corporate Bankruptcy

Graham, John R. - 2019

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 …

Persistent link: https://www.econbiz.de/10012479872

Designed to Fail : Effects of the Default Option and Information Complexity on Student Loan Repayment

Cox, James C. - 2018

We ask why so few student loan borrowers enroll in Income Driven Repayment when the majority would benefit from doing so. To do so we run an incentivized laboratory experiment using a facsimile of the government's Student Loan Exit Counseling website. We test the role information complexity,...

Persistent link: https://www.econbiz.de/10012480909

No-fault Default, Chapter 11 Bankruptcy, and Financial Institutions

Merton, Robert C.; Thakor, Richard T. - National Bureau of Economic Research - 2021

bankruptcy process. We show that the deadweight costs of bankruptcy can be avoided or substantially reduced through no … bankruptcy process to efficiently allow the renegotiation of labor contracts in certain cases. In sharp contrast to the human …-capital-based theories of optimal capital structure in which the renegotiation of labor contract in bankruptcy is a cost associated with …

Persistent link: https://www.econbiz.de/10012482559

Leverage and Asset Bubbles : Averting Armageddon with Chapter 11?

Miller, Marcus - 2010

bankruptcy procedures for doing this fail to internalise the price effects of asset 'fire-sales' to pay down debts, however. We …

Persistent link: https://www.econbiz.de/10012462797

Rollover Risk and Market Freezes

Acharya, Viral V. - 2010

The crisis of 2007-09 has been characterized by a sudden freeze in the market for short-term, secured borrowing. We present a model that can explain a sudden collapse in the amount that can be borrowed against finitely-lived assets with little credit risk. The borrowing in this model takes the...

Persistent link: https://www.econbiz.de/10012462978