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A Practitioners' Guide to Leverage Through Downturns

Ruben, Joshua - 2021

There is extensive research addressing questions of optimal capital structure. Studies typically focus on estimating the appropriate level of debt and the factors associated with financial leverage. This paper addresses a slightly different question: how does a company's choice of leverage...

Persistent link: https://www.econbiz.de/10013230083

European Banks’ Profitability and Sentimental Cycle

Anastasiou, Dimitrios; Giannoulakis, Stelios; … - 2022

economic sentiment on European banks’ profitability during the 1995–2019 period. We find that a greater shock in economic … sentiment leads to a persistent and gradually amplified stimulation of banks’ profitability. Our findings extend previous … evidence on the determinants of bank profitability and have important policy implications. First, macroprudential policymakers …

Persistent link: https://www.econbiz.de/10014238975

Credit Allocation and Macroeconomic Fluctuations

Mueller, Karsten; Verner, Emil - National Bureau of Economic Research - 2023

We study the relationship between credit expansions, macroeconomic fluctuations, and financial crises using a novel database on the sectoral distribution of private credit for 117 countries since 1940. We document that, during credit booms, credit flows disproportionately to the non-tradable...

Persistent link: https://www.econbiz.de/10014322807

Working capital management through the business cycle : evidence from the corporate sector in Poland

Mielcarz, Paweł; Osiichuk, Dmytro; Wnuczak, Paweł - In: Contemporary economics 12 (2018) 2, pp. 223-236

the Polish corporate sector. By exploring the interrelation between working capital investment and profitability ratios … turmoil. The paper highlights the importance of working capital management for optimizing a firm’s profitability. Research …

Persistent link: https://www.econbiz.de/10011889586

The Impact of Working Capital Management on Firm Profitability in Different Business Cycles : Evidence from Finland

Enqvist, Julius - 2013

examine the role of business cycles on the working capital-profitability relationship using a sample of Finnish listed … companies over an 18 year period. We find the impact of business cycle on the working capital-profitability relationship is more …

Persistent link: https://www.econbiz.de/10013093652

Insurance Firms’ Capital Adjustment, Profitability, and Insolvency Risk Under Underwriting Cycles

Guidara, Alaa - 2015

and profitability of Canadian property and casualty insurers. We find that the need to use retained earnings that have … been accumulated in soft markets forces insurers to increase their profitability to withstand upcoming hard market … decrease but so do profitability and solvency. Our observations, while suggesting the need for greater regulatory vigilance in …

Persistent link: https://www.econbiz.de/10013013608

Do Economic Conditions Drive DIP Lending? : Evidence from the Financial Crisis

Tung, Frederick - 2017

When contemplating Chapter 11, the first step for many firms is to seek financing for their continuing operations in bankruptcy. Because such financing would otherwise be hard to find, the Bankruptcy Code authorizes debtors to offer sweeteners to debtor-in-possession (DIP) lenders. These...

Persistent link: https://www.econbiz.de/10012968368

Cyclical Patterns of Systemic Risk Metrics : Cross-Country Analysis

Iossifov, Plamen K.; Schmidt, Tomas Dutra - 2021

We analyze a range of macrofinancial indicators to extract signals about cyclical systemic risk across 107 economies over 1995-2020. We construct composite indices of underlying liquidity, solvency and mispricing risks and analyze their patterns over the financial cycle. We find that liquidity...

Persistent link: https://www.econbiz.de/10013243043

Internal Sources of Finance and the Great Recession

Barnes, Michelle L. - 2011

We exploit Statement of Cash Flows data from Compustat to decompose firms' cash stocks by source and show that the rise in cash holdings since the late 1980s was driven by externally generated cash until 2000, and by internally generated cash afterwards. Firms stockpiling externally generated...

Persistent link: https://www.econbiz.de/10013132529

Rationing of Bank Credit to Small Businesses : Evidence from the Great Recession

Montoriol-Garriga, Judit - 2012

We develop a model of bank lending that allows for credit rationing in equilibrium. Recognizing that small firms incur a higher percentage cost of monitoring than large firms, the model shows that the incidence of bank credit rationing rises more for small firms than for large firms during...

Persistent link: https://www.econbiz.de/10013107543