This policy brief investigates the likelihood of corporate insolvency and the potential implications of debt overhang of non-financial corporations associated with the Coronavirus (COVID-19) outbreak. Based on simple accounting exercises, it evaluates the extent to which firms may deplete their...

The slowdown of economic activity caused by the COVID-19 outbreak and related emergency measures implemented to tackle the health crisis have led to severe difficulties for companies to meet their financial obligations. Many of the fixed costs, such as rents and interest payments, remain due...

The sheer volume of debt hanging over Asian companies suggests that corporate insolvency should remain a top policy concern.  This, despite signs of improvement resulting from dramatic regulatory overhauls that followed the 1997-1998 Asian financial crisis.  Moreover, the absence of widespread...

The sheer volume of debt hanging over Asian companies suggests that corporate insolvency should remain a top policy concern. This conference proceedings presents reports from each country on the trends and developments in debt and credit risk since the 1997-1998 Asian financial crisis. It also...

This paper explores how different reasons for business closure impact the probability that financial loss will be suffered by creditors. Using German small business data, the study finds that business closure due to financial problems is strongly correlated with a likelihood of financial loss....