Narrow search
Showing 1 - 10 of 4,049
Cover Image
Pandemic Exposure, Credit Market Reactions, and Corporate Default Risk
Imerman, Michael B.; Ye, Xiaoxia; Zhao, Ran - 2021
We develop a theoretical model quantifying how firm-level pandemic exposure and sentiment, as informational shocks, affect a firm’s credit spread and default risk. Consistent with model predictions, we find significantly positive impacts on single-name credit default swap (CDS) spreads from...
Persistent link: https://www.econbiz.de/10013225671
Cover Image
Company cost of capital and leverage : a simplified textbook relationship revisited
Haag, Valentin Georg; Koziol, Christian - In: Schmalenbach journal of business research : SBUR 75 (2023) 1, pp. 37-69
In this paper, we revisit a frequently employed simplification within the WACC approach that company cost of capital kV is supposed to be invariant to the debt ratio and therefore equal to the unlevered cost kU . Even though we know from Miles and Ezzell (1980) that kV formally differs from kU ,...
Persistent link: https://www.econbiz.de/10014325747
Cover Image
Obvious and hidden features of corporate default in bankruptcy models
Kuběnka, Michal; Myšková, Renáta - In: Journal of business economics and management 20 (2019) 2, pp. 368-383
The aim of this article is to prove the key role of the structure of the research sample used for accuracy determining on the accuracy of bankruptcy models. The creators of these models report the accuracy usually in the range of 60 to 90%. The authors of this article claim that these values are...
Persistent link: https://www.econbiz.de/10012175694
Cover Image
Default rates in the loan market for SMEs : evidence from Slovakia
Fidrmuc, Jarko; Hainz, Christa; Malesich, Anton - 2007
Banks entering an emerging market face a lot of uncertainty about the risks involved in lending. We use a unique unbalanced panel of nearly 700 short-term loans made to SMEs in Slovakia between January 2000 and June 2005. Of the loans granted, on average 6.0 per cent of the firms defaulted....
Persistent link: https://www.econbiz.de/10003470476
Cover Image
Default Rates in the Loan Market for SMEs : Evidence from Slovakia
Fidrmuc, Jarko - 2011
determinants of SME defaults. Moreover, we find that indebtedness significantly increases the probability of default. Liability as …
Persistent link: https://www.econbiz.de/10013121959
Cover Image
Credit risk versus capital requirements under Basel II : are SME loans and retail credit really different?
Jacobson, Tor; Lindé, Jesper; Roszbach, Kasper - 2004
the differences between the risk properties of retail, SME and corporate credit has been based on parameterized models of … businesses in the sample is rated by both banks, we can generate loss distributions for SME, retail and corporate credit … portfolios with a constant risk profile. Our findings suggest that a special treatment for retail credit and SME loans may not be …
Persistent link: https://www.econbiz.de/10011583864
Cover Image
Trade-off-theory vs. pecking order theory and the determinants of corporate leverage : evidence from a panel data analysis upon French SMEs (2002 - 2010)
Adair, Philippe; Adaskou, Mohamed - In: Cogent economics & finance 3 (2015) 1, pp. 1-11
We test the assumptions of trade-off theory (TOT) and pecking order theory (POT) regarding corporate leverage. The dependent variable being the debt ratio, we apply a linear model upon a balanced panel data-set of 2,370 French SMEs over the period 2002 - 2010. In accordance to TOT, trade credit...
Persistent link: https://www.econbiz.de/10010492381
Cover Image
The importance of equity finance for R&D activity : are there differences between young and old companies?
Müller, Elisabeth; Zimmermann, Volker - 2006
This paper analyzes the importance of equity finance for the R&D activity of small and medium-sized enterprises. We use information on almost 6000 German SMEs from a company survey. Using the intensity of banking competition at the district level as instrument to control for endogeneity, we find...
Persistent link: https://www.econbiz.de/10010365872
Cover Image
The prediction of corporate bankruptcy and Czech economy's financial stability through logit analysis
Jakubík, Petr (contributor); Teplý, Petr (contributor) - 2008
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...
Persistent link: https://www.econbiz.de/10003755238
Cover Image
Market microstructure effects on firm default risk evaluation
Barsotti, Flavia; Sanfelici, Simona - In: Econometrics : open access journal 4 (2016) 3, pp. 1-31
Default probability is a fundamental variable determining the credit worthiness of a firm and equity volatility estimation plays a key role in its evaluation. Assuming a structural credit risk modeling approach, we study the impact of choosing different non parametric equity volatility...
Persistent link: https://www.econbiz.de/10011506497