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Bankruptcy and Firm Dynamics : The Case of the Missing Firms

Rodríguez-Delgado, Jose Daniel - 2010

Financial frictions have been documented as an important determinant of firm dynamics. In this paper I model bankruptcy … procedures, liquidation in particular, as an institutional feature that affects both sides of financial transactions. I construct … a model of firm dynamics that generate endogenous borrowing limits and I find that a) inefficient bankruptcy procedures …

Persistent link: https://www.econbiz.de/10014402687

What Happens After Supervisory Intervention? : Considering Bank Closure Options

Josefsson, Mats - 2003

Closures have been used to resolve problem banks in many countries in a wide range of economic circumstances, yet banking supervisors frequently defer intervention and closure. Avoiding the costs of disruption is the principal argument in favor of extraordinary measures, such as the use of...

Persistent link: https://www.econbiz.de/10014403641

The COVID-19 impact on corporate leverage and financial fragility

Haque, Sharjil Muktafi; Varghese, Richard - 2021

We study the impact of the COVID-19 recession on capital structure of publicly listed U.S. firms. Our estimates suggest leverage (Net Debt/Asset) decreased by 5.3 percentage points from the pre-shock mean of 19.6 percent, while debt maturity increased moderately. This de-leveraging effect is...

Persistent link: https://www.econbiz.de/10012796218

COVID-19 and SME failures

Kalemli-Ozcan, Sebnem; Gourinchas, Pierre-Olivier; … - 2020

We estimate the impact of the COVID-19 crisis on business failures among small and medium size enterprises (SMEs) in seventeen countries using a large representative firm-level database. We use a simple model of firm cost-minimization and measure each firm's liquidity shortfall during and after...

Persistent link: https://www.econbiz.de/10012391969

Flattening the insolvency curve : promoting corporate restructuring in Asia and the Pacific in the post-C19 recovery

Bauer, Andreas; Craig, R.; Garrido, José María; Kang, … - 2021

The Coronavirus disease (COVID-19) triggered a sharp contraction of economic activity across Asia and the Pacific. Policymakers adopted a 'whatever it takes' approach in their initial response, relying mainly on liquidity support to help firms survive the shock. This paper discusses how the...

Persistent link: https://www.econbiz.de/10012487321

Debt is not free

Moreno Badía, Marialuz; Medas, Paulo; Gupta, Pranav; … - 2020

With public debt soaring across the world, a growing concern is whether current debt levels are a harbinger of fiscal crises, thereby restricting the policy space in a downturn. The empirical evidence to date is however inconclusive, and the true cost of debt may be overstated if interest rates...

Persistent link: https://www.econbiz.de/10012170046

Global corporate stress tests : impact of the COVID-19 pandemic and policy responses

Tressel, Thierry; Ding, Xiaodan - 2021

Corporate sector vulnerabilities have been a central policy topic since the outset of the COVID-19 pandemic. In this paper, we analyze some 17,000 publicly listed firms in a sample of 24 countries, and assess their ability to withstand shocks induced by the pandemic to their liquidity, viability...

Persistent link: https://www.econbiz.de/10012605125

Restructuring and insolvency in Europe : policy options in the implementation of the EU directive

Garrido, José María; DeLong, Chanda; Rasekh, Amira; … - 2021

The Directive on Restructuring and Insolvency sets minimum standards for restructuring and certain insolvency matters, but its harmonization effect will be limited given multiple options for implementation, likely leading to divergent restructuring models in Europe. These options reveal...

Persistent link: https://www.econbiz.de/10012612340

Scenario analysis with the DD-PD mapping approach : stock market shocks and U.S. corporate default risk

Chan-Lau, Jorge A. - 2021

This paper introduces the quantile regression- based Distance-to-Default to Probability of Default (DD-PD) mapping, which links individual firms' DD to their real world PD. Since changes in the DD depend on a handful of parameters, the mapping easily accommodates shocks arising from quantitative...

Persistent link: https://www.econbiz.de/10012613371

The insolvency regime for large enterprises in Italy : an economic and legal assessment

Belhocine, Nazim; Garcia-Macia, Daniel; Garrido, José … - 2018

. The regime results, in most cases, in the sale of parts of the group, followed by a liquidation phase of the remaining …

Persistent link: https://www.econbiz.de/10011932376