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Corporate Resiliency and the Choice Between Financial and Operational Hedging

Acharya, Viral V.; Almeida, Heitor; Amihud, Yakov; Ping, Liu - National Bureau of Economic Research - 2025

We investigate how firms manage financial default risk (on debt) and operational default risk (on delivery obligations). Financially constrained firms reduce operational hedging through inventory and supply chain in favor of cash holdings. Our model predicts that firms' markup increases with...

Persistent link: https://www.econbiz.de/10015194985

Evidence on the Importance of Market Competition in Distress Propagation

Dou, Winston Wei; Johnson, Shane A.; Wu, Wei - National Bureau of Economic Research - 2025

Using local natural disasters as a quasi-experimental setting, we show that heightened distress risk in shocked firms drives both these firms and their unshocked competitors to cut profit margins by about 0.8 percentage points. These reductions stem from predatory pricing, inventory liquidation,...

Persistent link: https://www.econbiz.de/10015326457

Deposit and Credit Reallocation in a Banking Panic : The Role of State-Owned Banks

Acharya, Viral V.; Das, Abhiman; Kulkarni, Nirupama; … - National Bureau of Economic Research - 2022

We study a bank run in India in which private bank branches experience sudden and considerable loss of deposits that seek safety in state-owned public sector banks (PSBs). We trace the consequences of this reallocation using granular data on bank-firm relationships and branch balance sheets. The...

Persistent link: https://www.econbiz.de/10013435119

Bank Runs, Fragility, and Regulation

Amador, Manuel; Bianchi, Javier - National Bureau of Economic Research - 2024

We examine banking regulation in a macroeconomic model of bank runs. We construct a general equilibrium model where banks may default because of fundamental or self-fulfilling runs. With only fundamental defaults, we show that the competitive equilibrium is constrained efficient. However, when...

Persistent link: https://www.econbiz.de/10014528381

The Benefits and Costs of Secured Debt

Benmelech, Efraim - National Bureau of Economic Research - 2024

Secured debt--a debt contract that offers security to creditors in the form of collateralized assets--has been a cornerstone of credit markets in most societies since antiquity. The ability to seize and sell collateral reduces the creditor's expected losses when the debtor defaults on a promised...

Persistent link: https://www.econbiz.de/10014528392

Personal Bankruptcy Law and Innovation around the World

Cumming, Douglas J.; Morck, Randall; Rong, Zhao; Zhang, … - National Bureau of Economic Research - 2024

are damped in countries that impose minimum capital requirements on new firms. Firms with largescale legacy technology may … avoid radical innovations that devalue that technology. Consequently, new, initially small and risky firms often develop the …

Persistent link: https://www.econbiz.de/10015056150

Creditor-on-Creditor Violence and Secured Debt Dynamics

Antill, Samuel; Wang, Neng; Jiang, Zhaoli - National Bureau of Economic Research - 2024

Secured lenders have recently demanded a new condition in distressed debt restructurings: competing secured lenders must lose priority. We model the implications of this "creditor-on-creditor violence" trend. In our dynamic model, secured lenders enjoy higher priority in default. However,...

Persistent link: https://www.econbiz.de/10015056182

Life After Death : A Field Experiment with Small Businesses on Information Frictions, Stigma, and Bankruptcy

Bernstein, Shai; Colonnelli, Emanuele; Hoffman, Mitchell; … - National Bureau of Economic Research - 2023

In an RCT with US small businesses, we document that a large share of firms are not well-informed about bankruptcy. Many assume that bankruptcy necessarily entails the death of a business and do not know about Chapter 11 bankruptcy, where debts are renegotiated so that the business can continue...

Persistent link: https://www.econbiz.de/10014226130

Bankruptcy Exemption of Repo Markets : Too Much Today for Too Little Tomorrow?

Acharya, Viral V.; Anshuman, V. Ravi; Viswanathan, S. - National Bureau of Economic Research - 2024

We examine the desirability of granting "safe harbor" provisions to creditors of financial intermediaries in sale-and-repurchase (repo) contracts. Exemption from an automatic stay in bankruptcy enables financial intermediaries to raise greater liquidity and induces entry of intermediaries with...

Persistent link: https://www.econbiz.de/10014468227

The Effects of Website Provision on the Demand for German Women's Magazines

Kaiser, Ulrich - 2002

The effect of website provision on the demand for German women's magazines is analyzed using differentiated product … demand models estimated on panel data that cover the period 1990 2000. Descriptive evidence on the magazines' website … contents suggests that websites are used to provide supplementary information and to advertise the current print issue. Website …

Persistent link: https://www.econbiz.de/10012469909

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