This paper studies the relationship between a country's risk of default and the illiquidity of bonds issued by the same country. Government bonds are traded in the secondary market on an inter-dealer electronic trading platform. Bond's illiquidity depends on both the country's fundamental and...

We investigate the impact of banking competition on corporate credit risk. Although banking competition does not, on average, affect corporate bankruptcy rates, we find that it causes corporate bankruptcies to increase significantly for high-leverage firms. This effect lasts up to eight years...

We investigate the impact of deregulation-induced banking competition on corporate credit risk. Although banking competition does not, on average, affect corporate bankruptcy rates, we find that it causes corporate bankruptcies to increase significantly for high-leverage firms. This effect lasts...