Showing 1 - 10 of 609
In this paper, we ask how firms’ optimal debt structure responds to a change in the bankruptcy regime. While existing work shows that this relationship is dependent on the ex-ante liquidation value of a firm, we demonstrate that the ownership of lenders they are connected to also matters. We...
Persistent link: https://www.econbiz.de/10013301190
As the economy enters a phase transition into an aperiodic state, the tech industry finds itself at the brink of chaos. Inflated evaluations in private markets before IPOs and increasing Shannon entropy of post-IPO share prices reveal a market teetering on the edge. But is it a phase transition,...
Persistent link: https://www.econbiz.de/10014258763
Using data from financial reorganization plans filed by insolvent Canadian firms, we estimate the discount rate implicit in the unsecured creditor's reorganization decision. Using (HARA) utility functions, we find the implicit monthly discount rate of creditors to be 4.9%, which corresponds to...
Persistent link: https://www.econbiz.de/10014050373
Balance sheet recessions have been a drag on activity after the Global Financial Crisis, underscoring the important role of balance sheet adjustment for resuming sustained growth. In this paper we examine private sector deleveraging experiences across 36 advanced and emerging economies countries...
Persistent link: https://www.econbiz.de/10013027217
Balance sheet recessions have been a drag on activity after the Global Financial Crisis, underscoring the important role of balance sheet adjustment for resuming sustained growth. In this paper we examine private sector deleveraging experiences across 36 advanced and emerging economies countries...
Persistent link: https://www.econbiz.de/10013025503
When companies fail workers lose their jobs which raises the unemployment rate and some displaced workers with less financial wealth, larger financial obligations, and who are the sole bread winners in a family become likely candidates for a personal bankruptcy filing. The central role played by...
Persistent link: https://www.econbiz.de/10013116531
We formulate a Cournot-type market equilibrium model of simultaneous trading in the CDS and Loan CDS (LCDS) markets. We use novel formulations of two-market demand functions that include trading costs and margins. The equilibrium identifies a relation between premiums, elasticities and recovery...
Persistent link: https://www.econbiz.de/10012974399
We propose the realized systemic risk beta as a measure for financial companies' contribution to systemic risk given network interdependence between firms' tail risk exposures. Conditional on statistically pre-identified network spillover effects and market as well as balance sheet information,...
Persistent link: https://www.econbiz.de/10010201170
Based on the study of Kaminsky and Reinhart (1999), this paperstudies and applies early warning systems of currency crises to thecase of Vietnam from 1996 to 2014. Its results show that the currencycrisis is signaled six times during the observed period. Severalprincipal indicators of the...
Persistent link: https://www.econbiz.de/10013314185
This paper presents evidence on the likely composition effects of sovereign portfolios on two accounting based measures of banks' ex-post risk profile, using granular data by the European Banking Authority. Our study period covers from 2009 to 2018. We find that banks located in European...
Persistent link: https://www.econbiz.de/10012826300