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Bankruptcy Process for Sale
Ayotte, Kenneth - 2020
The lenders that fund Chapter 11 reorganizations exert significant influence over the bankruptcy process through the contract associated with the debtor-in-possession (“DIP”) loan. In this Article, we study a large sample of DIP loan contracts and document a trend: over the past three...
Persistent link: https://www.econbiz.de/10012832939
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Life After Death : A Field Experiment with Small Businesses on Information Frictions, Stigma, and Bankruptcy
Bernstein, Shai; Colonnelli, Emanuele; Hoffman, Mitchell; … - National Bureau of Economic Research - 2023
In an RCT with US small businesses, we document that a large share of firms are not well-informed about bankruptcy. Many assume that bankruptcy necessarily entails the death of a business and do not know about Chapter 11 bankruptcy, where debts are renegotiated so that the business can continue...
Persistent link: https://www.econbiz.de/10014226130
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Bankruptcy and small firms' access to credit
Berkowitz, Jeremy; White, Michelle J. - 2002
Persistent link: https://www.econbiz.de/10001677420
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Stock Liquidity and SMEs’ Likelihood of Bankruptcy : Evidence from the US Market
El Kalak, Izidin - 2018
We study the association between the stock liquidity of SMEs in the US and their likelihood of bankruptcy, using a dataset that comprises information on 5075 firms over the time period from 1984 to 2013 using the hazard model of Campbell et al. (2008). We find that less liquid stocks are...
Persistent link: https://www.econbiz.de/10012930056
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Entrepreneurial Optimism, Credit Availability, and Cost of Financing : Evidence from U.S. Small Businesses
Dai, Na - 2017
Using a large sample of U.S. small businesses and a new measure of optimism, we examine the role of entrepreneurial optimism in small business lending. We provide evidence that optimistic entrepreneurs are not rationed by lenders. Quite the opposite, our results suggest that they often have...
Persistent link: https://www.econbiz.de/10012976814
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A dialogue on the costs and benefits of automatic stays for derivatives and repurchase agreements
Duffie, Darrell; Skeel, David - 2012 - Last rev.: March 04, 2012
For nearly two years, the two of us have had a running discussion of the costs and benefits of automatic stays in bankruptcy for qualified financial contracts (QFCs) such as derivatives and repurchase agreements, particularly those held by systemically important major dealer banks. Under current...
Persistent link: https://www.econbiz.de/10009504439
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Private Equity and the Resolution of Financial Distress
Hotchkiss, Edith S. - 2020
We examine the role private equity (PE) firms play in the resolution of financial distress using a sample of 2,151 firms that borrow in the leveraged loan market between 1997 and 2010. Controlling for leverage, PE-backed firms are no more likely to default than other leveraged loan borrowers....
Persistent link: https://www.econbiz.de/10012857451
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Are Female CEOs Associated With Lower Insolvency Risk? Evidence From the U.S. Property-Casualty Insurance Industry
Cheng, Jiang; Li, Jing - 2023
This paper investigates the relationship between female CEOs and insolvency risk of U.S. property-casualty insurance … companies. We show that female CEOs are associated with lower insurer insolvency propensity, higher z-score, and lower standard … difference-in-difference approach. Furthermore, we find that the impact of female CEOs on insurer insolvency risk is moderated by …
Persistent link: https://www.econbiz.de/10014349797
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Zombie Lending to U.S. Firms
Favara, Giovanni; Minoiu, Camelia; Perez-Orive, Ander - 2022
We provide the first empirical evidence that zombie firms---highly levered firms with weak growth prospects---are not a prominent feature of the U.S. economy and that U.S. banks do not lend to such firms. Using confidential supervisory data on firm-bank relationships during the 2014--2019...
Persistent link: https://www.econbiz.de/10013406636
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Zombie lending to U.S. firms
Favara, Giovanni; Minoiu, Camelia; Pérez, Ander - 2024
We show that U.S. banks do not engage in zombie lending to firms of deteriorating profitability, irrespective of capital levels and exposure to such firms. In contrast, unregulated financial intermediaries do, originating more and cheaper loans to these firms. We establish these results using...
Persistent link: https://www.econbiz.de/10015053781