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Cash Holdings and Credit Risk
Acharya, Viral V. - 2011
liquidity may be related positively to the longer-term probability of default. Our empirical analysis confirms these predictions …
Persistent link: https://www.econbiz.de/10012461663
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No-fault Default, Chapter 11 Bankruptcy, and Financial Institutions
Merton, Robert C.; Thakor, Richard T. - National Bureau of Economic Research - 2021
This paper analyzes the costs and benefits of a no-fault-default debt structure as an alternative to the typical bankruptcy process. We show that the deadweight costs of bankruptcy can be avoided or substantially reduced through no-fault-default debt, which permits a relatively seamless transfer...
Persistent link: https://www.econbiz.de/10012482559
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Zombie Lending and Depressed Restructuring in Japan
Caballero, Ricardo J. - 2006
In this paper, we propose a bank-based explanation for the decade-long Japanese slowdown following the asset price collapse in the early 1990s. We start with the well-known observation that most large Japanese banks were only able to comply with capital standards because regulators were lax in...
Persistent link: https://www.econbiz.de/10012466526
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The Myth of the Patient Japanese : Corporate Myopia and Financial Distress in Japan and the US
Hall, Brian J. - 1996
It is widely believed that the stock-market oriented US financial system forces corporate managers to behave myopically relative to their Japanese counterparts, who operate in a bank-based system. We hypothesize that if US firms are more myopic than Japanese firms, then episodes of financial...
Persistent link: https://www.econbiz.de/10012473010
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Anatomy of Financial Distress : An Examination of Junk-Bond Issuers
Asquith, Paul - 1991
This paper examines the events following the onset of financial distress for 102 public junk bond issuers. We find that out-of-court debt relief mainly comes from junk bond - holders; banks almost never forgive principal, though they do defer payments and waive debt covenants. Asset sales are an...
Persistent link: https://www.econbiz.de/10012475042
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Asset Liquidity and the Cost of Capital
Ortiz-Molina, Hernán - 2010
We study the effect of real asset liquidity on a firm's cost of capital. We find an aggregate asset-liquidity discount … in firms' cost of capital that is strongly counter-cyclical. At the firm-level we find that asset liquidity affects firms … periods of high asset liquidity have lower cost of capital. This effect is stronger when the asset liquidity is provided by …
Persistent link: https://www.econbiz.de/10012462661
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Liquidity Needs in Economies with Interconnected Financial Obligations
Rotemberg, Julio J. - 2008
make sure that all debts within the system are settled. The main result is that these liquidity needs are larger when these …
Persistent link: https://www.econbiz.de/10012464425
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Financial Centrality and Liquidity Provision
Chandrasekhar, Arun G. - 2018
liquidity to the agent …
Persistent link: https://www.econbiz.de/10012453308
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Liquidity and Governance
Back, Kerry - 2013
Is greater trading liquidity good or bad for corporate governance? We address this question both theoretically and … information concerns her own plans for taking an active role in governance. We show that an increase in the liquidity of the firm …'s stock increases the likelihood of the large investor 'taking the Wall Street walk.' Thus, higher liquidity is harmful for …
Persistent link: https://www.econbiz.de/10012458993
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Cyclicality, Performance Measurement, and Cash Flow Liquidity in Private Equity
Robinson, David T. - 2011
liquidity providers (sinks) when market valuations are high (low). Venture cash flows and performance are considerably more …
Persistent link: https://www.econbiz.de/10012461230