The literature on debt restructuring usually assumes that banks behave in a uniform way towards firms in distress. Using a recent survey of Italian banks, we show that banks follow different strategies when they decide whether to take part in the workout process, in that some of them do...

The literature on debt restructuring usually assumes that banks behave in a uniform way towards firms in distress. Using a recent survey of Italian banks, we show that banks follow different strategies when they decide whether to take part in the workout process, in that some of them do...

This paper provides an empirical investigation of the substitution hypothesis between trade indebtedness and bank loans, based on a sample of 245,000 Italian firms for the period 2010-15, when episodes of bank credit contraction occurred. The econometric approach is based on a shift-and-share IV...