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Default forecasting considering correlation between business and credit cycles

Kanno, Masayasu - In: Journal of applied finance & banking 2 (2012) 5, pp. 275-305

Bank’s major approach in her internal rating system is credit scoring valuation which focused on corporates …

Persistent link: https://www.econbiz.de/10009673680

Impaired bank health and default risk

Fukuda, Shin'ichi; Kasuya, Munehisa; Akashi, Kentaro - In: Pacific-Basin finance journal 17 (2009) 2, pp. 145-162

Persistent link: https://www.econbiz.de/10003830621

Determinants of acquisition and failure : stylized facts and lessons for empirical studies

Köke, F. Jens - 2001

This study provides new stylized facts on the determinants of corporate failure and acquisition in Germany. It also offers important lessons for the design of empirical studies. We show that firms experiencing failure or acquisition are significantly different from surviving firms on a number of...

Persistent link: https://www.econbiz.de/10011446202

Bailing on the car that wasn't bailed out : bounding consumer reactions to financial distress

Huse, Cristian; Koptyug, Nikita - 2015

This paper examines how consumers react to the financial distress of durable goods manufacturers by looking at the Swedish new car market. We employ a difference-in-differences matching methodology whereby we compare sales of carmaker Saab with those of a carefully constructed control group of...

Persistent link: https://www.econbiz.de/10011386760

Is bankruptcy costly? : recent evidence on the magnitude and determinants of indirect bankruptcy costs

Singh, Bhabra Gurmeet; Yao, Yuan - In: Journal of applied finance & banking 1 (2011) 2, pp. 39-68

In this study we estimate indirect bankruptcy costs for a recent sample of large corporate bankruptcies in the United States over the period, 1997 to 2004. We find indirect bankruptcy costs of approximately 2%, 6.2% and 14.9% of firm value in years -3, -2 and -1 relative to the year of...

Persistent link: https://www.econbiz.de/10009536170

Financial Statements as Sole Predictors of Financial Distress : The Need for New Financial Ratios

Assaad Khalil, Karim Wagih - 2011

Four new ratios, that capture firms' Stability, Downside Risk and Audit Quality, are significant predictors of financial distress as evidenced by bankruptcy. Moreover, they improve substantially a logit based credit metric when combined with other classic ratios. A credit metric that comprises a...

Persistent link: https://www.econbiz.de/10013127905

The Economic Logic of the Lease/Loan Distinction in Bankruptcy

Hemel, Daniel Jacob - 2011

The Bankruptcy Code accords much more favorable treatment to lessors than to secured lenders, but legal scholars have yet to identify a normative justification for the disparate treatment of the two transaction types. Law-and-economics scholars have written off the lease/loan distinction as...

Persistent link: https://www.econbiz.de/10013128158

Ownership Structure, Revenue Diversification and Insolvency Risk in European Banks

Sanya, Sarah - 2011

risk - the focus of this paper - is crucial. Our results show revenue diversification reduces insolvency risk in banks with … the impact of the latter on insolvency risk in banks. The results also have important policy implications for regulators …The financial crisis brought to light weakness in the assessments of risks and vulnerabilities in banks. Consequently …

Persistent link: https://www.econbiz.de/10013128385

Costly External Finance, Liquidity Risk, and Default Risk

Yang, Jun - 2011

I use the 2007-2008 financial crisis to gauge how internal financial resources and external financial constraints mitigate or worsen the impact of the crisis on default risk of US industrial firms. I identify heterogeneity in short-term funding needs at the onset of the crisis by exploiting...

Persistent link: https://www.econbiz.de/10013128496

Corporate Hedging, Financial Distress, and Product Market Competition

Zhu, Margaret Rui - 2011

The paper investigates the relationship between corporate hedging and product market competition. Using a broad sample of multiple commodity-inputs industries over the period of 1994-2008, the paper examines whether an unfavorable commodity shock has a long term effect on unhedged firms. I find...

Persistent link: https://www.econbiz.de/10013128617