Modelling the link between the global macro-financial factors and firms’ default probabilities constitutes an elementary part of financial sector stress-testing frameworks. Using the Global Vector Autoregressive(GVAR) model and constructing a linking satellite equation for the firm-level...

Traditional methods for evaluating corporate credit risk rarely consider the impact of the macro economy on corporate value and performance. We argue that lenders and management can obtain valuable information about the need for and approach to restructuring by decomposing default predictions...

This article presents a financial scoring model estimated on Czech corporate accounting data. Seven financial indicators capable of explaining business failure at a 1-year prediction horizon are identified. Using the model estimated in this way, an aggregate indicator of the creditworthiness of...

This paper studies the economic impact of the current global economic downturn on the household sector. Household budgets can be negatively affected by declines in nominal wages and increases in unemployment. We empirically test this effect for the small open emerging economy. As a result of a...

In August 2007 the United Kingdom experienced its first bank run in over 140 years. Although Northern Rock was not a particularly large bank (it was at the time ranked 7th in terms of assets) it was nevertheless a significant retail bank and a substantial mortgage lender. In fact, ten years...

Zombieunternehmen werden mittlerweile sowohl in den Medien als auch in der Wissenschaft breit diskutiert. Da sich die meisten Studien vorrangig international mit dem Phänomen auseinandersetzen, fehlt es an detaillierten Analysen für die Schweiz. Das vorliegende Kurzpapier beleuchtet daher...

Aufgrund der stark binnenwirtschaftlichen Ausrichtung der Lockdown-Maßnahmen gegen die Corona-Pandemie sind in weit stärkerem Maße als in der Finanz- und Wirtschaftskrise vor einem Jahrzehnt auch mittelständische Unternehmen bis hin zu Kleinstbetrieben betroffen. Zudem lei-det der...

A personal bankruptcy law that allows for a "fresh start" after bankruptcy reduces the individual risk involved in entrepreneurial activity. On the other hand, as risk shifts to creditors who recover less of their credit after a debtor's bankruptcy, lenders may charge higher interest rates or...