The world has become more interconnected over the past few decades. Against this backdrop, economic and financial … develop a measure of global systemic risk and use bank stress testing techniques to quantify the systemic impact of the shock …

emerging-market leverage, there is little systematic research on factors that impact corporate distress risk in emerging … markets. Existing bankruptcy risk models developed using US data have low predictive power when applied to emerging market … economy monetary policy changes, US dollar movements, or shifts in global liquidity and risk-aversion. A novel multi …

We document the negative effect of stock liquidity on default risk for a sample of 46 countries. We further find that … default risk declines following the introduction of the Directive on Markets in Financial Instruments (MiFID)—an exogenous … shock that increases liquidity. The effect of liquidity on default risk is more pronounced in countries with poorer investor …

, whilst removing credit risk transmission, systematically increase default risk …