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In this paper (letter) I discuss how blockchains potentially could affect the way credit risk is modeled, and how the improved trust and timing associated with blockchain-enabled real-time accounting could improve default prediction. To demonstrate the (quite substantial) effect the change would...
Persistent link: https://www.econbiz.de/10013208748
are more associated with the structure of the applicable bankruptcy laws and methods available to resolve a failed … directed first at closing institutions promptly, reforming bankruptcy statutes to admit special procedures for handling bank …
Persistent link: https://www.econbiz.de/10010292288
CEOs of large firms filing for bankruptcy are more likely to exit the executive labor market after bankruptcy and …-taking and manifest itself as lower rates of entrepreneurship and job growth, the mechanisms through which bankruptcy affects CEO … careers are not well understood. In this paper, we examine the effect of "random bankruptcy" decisions on small and medium …
Persistent link: https://www.econbiz.de/10013373824
would be bound to exit the market or even be forced into bankruptcy. The CBDC next-level model solution would eliminate the …
Persistent link: https://www.econbiz.de/10014474488
The Indian debt overhang issue is one of the major reasons that fresh investments are currently not being made in the scale required to promote higher growth and boost employment. Among banks the public sector banks (PSBs) are burdened with the bulk of net non-performing loans (NNPAs). These...
Persistent link: https://www.econbiz.de/10011807877
In this thesis, a model of bankruptcy prediction conditional on financial statements is presented. Apart from giving a … bankruptcy prediction model implies that the rate at which two variables can substitute another holding predicted risk unchanged … connections between financial ratios and the particular outcome of bankruptcy, a model structure which determines an upper bound …
Persistent link: https://www.econbiz.de/10012143588
This paper examines the implications that alternative regulatory structures may have for resolving failed banking institutions. We place our emphasis on the European Union (EU), which is both economically and financially large and has several features relating to cross-border banking in the form...
Persistent link: https://www.econbiz.de/10010292210
When the debt of firms in distress is dispersed, a restructuring agreement is difficult to reach because of free riding. We develop a repeated game in which banks come across each other frequently, allowing them to threaten a punishment in case of free riding. As the number of lending banks...
Persistent link: https://www.econbiz.de/10012059369
This paper investigates a model of strategic interactions in financial networks, where the decision by one agent on whether or not to default impacts the incentives of other agents to escape default. Agents' payoffs are determined by the clearing mechanism introduced in the seminal contribution...
Persistent link: https://www.econbiz.de/10011928019
This paper addresses two issues encountered in the empirical financial distress literature: a-theoretical treatment of leverage and product-market competition as predictors of financial distress hazard; and lack of attention to frailty as a potential source of bias in reported estimates. We...
Persistent link: https://www.econbiz.de/10014547844