value of assets. The costs vary from 14.7% for bond renegotiations to 30.5% for bankruptcies, and are substantially higher …

approach avoids the downward selection bias and the upward bias when using the tradeoff theory to estimate bankruptcy costs …This paper examines bankruptcy costs using market prices of equity and put options during the financial crisis. Our …. While the average bankruptcy cost is about 20%, we find wide variation across and within industries. Costs are related …

This paper studies how creditors behave under costly collateral enforcement. I exploit quasi-experimental variation in … foreclosure costs generated from Maine's 2014 Greenleaf judgement. I estimate that that the foreclosure rate dropped by over 23 … costs become prohibitively expensive, at which point servicers provide forbearance to a subset of loans to prevent worsening …

not hold. Instead, the secured borrowing decision may be best characterized by a trade-off theory. The collateral trade …Collateral is often viewed as a low-cost mechanism to mitigate external financing frictions. However, we find that … firms face a substantial cost to pledge collateral. Exploiting a regulatory quirk of the disaster loan program of the Small …

as a reduction in bankruptcy-related costs. This trend raises the question as to what drives the frequency with which … defaults turn into bankruptcies. We propose a theory based on three pillars: first, bankruptcy is costlier than out … default decreases with bankruptcy costs and it increases with the frequency of strategic default – that is, default by firms …