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Barsky, Robert B. - 2009

We implement a new approach for the identification of news shocks about future technology. In a VAR featuring a measure of aggregate technology and several forward-looking variables, we identify the news shock as the shock orthogonal to technology innovations that best explains future variation...

Persistent link: https://www.econbiz.de/10013156463

Buybacks, Exit Bonds, and the Optimality of Debt and Liquidity Relief

Froot, Kenneth - 2021

liquidity-constrained debtors will respond by enough to make a reduction in debt profitable, but not by enough to make the …

Persistent link: https://www.econbiz.de/10013231587

Were Small Businesses More Likely to Permanently Close in the Pandemic?

Fairlie, Robert W.; Fossen, Frank M.; Johnsen, Reid; … - 2022

Previous estimates indicate that COVID-19 led to a large drop in the number of operating businesses operating early in the pandemic, but surprisingly little is known on whether these shutdowns turned into permanent closures and whether small businesses were disproportionately hit. This paper...

Persistent link: https://www.econbiz.de/10014079933

Liquidity Requirements, Liquidity Choice and Financial Stability

Diamond, Douglas W. - 2016

assets to survive runs. Regulation similar to the liquidity coverage ratio and the net stable funding ratio (that are soon be …

Persistent link: https://www.econbiz.de/10012997373

Funding Liquidity Without Banks : Evidence from a Shock to the Cost of Very Short-Term Debt

Restrepo, Felipe - 2017

more than long-term credit. Firms responded by cutting their short-term loans for liquidity management purposes and …, firms increase cash and cut investment. Thus, trade credit offers a substitute source of liquidity that can insulate some … firms from bank liquidity shocks …

Persistent link: https://www.econbiz.de/10012962722

Bankruptcy Spillovers

Bernstein, Shai - 2017

How do different bankruptcy approaches affect the local economy? Using U.S. Census microdata at the establishment level, we explore the spillover effects of reorganization and liquidation on geographically proximate firms. We exploit the random assignment of bankruptcy judges as a source of...

Persistent link: https://www.econbiz.de/10012963165

Bankruptcy and the Cost of Organized Labor : Evidence from Union Elections

Campello, Murillo - 2017

Unionized workers are entitled to special treatment in bankruptcy court. This can be detrimental to other corporate stakeholders in default states, with unsecured creditors standing to lose the most. Using data on union elections covering several decades, we employ a regression discontinuity...

Persistent link: https://www.econbiz.de/10012946497

Reorganization or Liquidation : Bankruptcy Choice and Firm Dynamics

Corbae, Dean - 2017

In this paper, we ask how bankruptcy law affects the financial decisions of corporations and its implications for firm dynamics. According to current U.S. law, firms have two bankruptcy options: Chapter 7 liquidation and Chapter 11 reorganization. Using Compustat data, we first document capital...

Persistent link: https://www.econbiz.de/10012953996

Credit Market Freezes

Benmelech, Efraim - 2017

Credit market freezes in which debt issuance declines dramatically and market liquidity evaporates are typically … bonds declined, and secondary credit markets became highly illiquid. In this paper we analyze liquidity in bond markets … during financial crises and compare two main theories of liquidity in markets: (1) asymmetric information and adverse …

Persistent link: https://www.econbiz.de/10012954001

Lessons Unlearned? Corporate Debt in Emerging Markets

Alfaro, Laura - 2017

This paper documents a set of new stylized facts about leverage and financial fragility for emerging market firms following the Global Financial Crisis (GFC). Corporate debt vulnerability indicators during the Asian Financial Crisis (AFC) attributed to corporate financial roots provide a...

Persistent link: https://www.econbiz.de/10012956372