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Analysis and profitability assessment of Polish construction companies threatened with bankruptcy

Maślanka, Tomasz - In: E-Finanse : finansowy kwartalnik internetowy 13 (2017) 4, pp. 89-96

This paper presents analysis of profitability indicators of Polish construction companies threatened with bankruptcy compared to analogous indicators obtained by Polish construction entities as a whole. The analysis concerns companies generating positive and negative financial results (both EBIT...

Persistent link: https://www.econbiz.de/10011900002

Shareholder bargaining power and the emergence of empty creditors

Colonnello, Stefano; Efing, Matthias; Zucchi, Francesca - 2018

Credit default swaps (CDSs) can create empty creditors who potentially force borrowers into inefficient bankruptcy but also reduce shareholders‘ incentives to default strategically. We show theoretically and empirically that the presence and the effects of empty creditors on firm outcomes...

Persistent link: https://www.econbiz.de/10011868608

Changes in corporate investment policy following the inception of credit default swap trade

Hong, Hyun A.; Ryou, Ji Woo; Srivastava, Anup - 2017

A credit default swap (CDS) enables a lender to hedge its risk exposure on a loan given to reference client. The lender then reduces the monitoring of the client's activities as well as aiding the distressed client. Two contrasting predictions can be made about how the borrower would respond to...

Persistent link: https://www.econbiz.de/10011756879

Confronting the zombies : policies for productivity revival

Andrews, Dan; McGowan, Muge Adalet; Millot, Valentine - 2017

much scope to improve the design of insolvency regimes in order to reduce the barriers to restructuring of weak firms and … the personal costs associated with entrepreneurial failure. Insolvency regime reform can not only address the … markets. As the zombie firm problem may partly stem from bank forbearance, complementary reforms to insolvency regimes are …

Persistent link: https://www.econbiz.de/10011779088

Analysis of bankruptcy threat for risk management purposes : a model approach

Wieczorek-Kosmala, Monika; Błach, Joanna; Trzęsiok, Joanna - In: International Journal of Financial Studies : open … 6 (2018) 4, pp. 1-17

In previous works, the importance of risk management implementation was addressed with regard to the problem of bankruptcy threat, with the explanation of risk impact on higher bankruptcy costs or the underinvestment problem. However, the evaluation of the impact of risk outcomes is technically...

Persistent link: https://www.econbiz.de/10011963925

Low inflation : high default risk AND high equity valuations

Bhamra, Harjoat Singh; Dorion, Christian; Jeanneret, … - 2018

We develop an asset-pricing model with endogenous corporate policies that explains how inflation jointly impacts real asset prices and corporate default risk. Our model includes two empirically grounded nominal frictions: fixed nominal coupons and sticky profitability. Taken together, these two...

Persistent link: https://www.econbiz.de/10011941263

The prediction of corporate bankruptcy and Czech economy's financial stability through logit analysis

Jakubík, Petr (contributor); Teplý, Petr (contributor) - 2008

This article presents a financial scoring model estimated on Czech corporate accounting data. Seven financial indicators capable of explaining business failure at a 1-year prediction horizon are identified. Using the model estimated in this way, an aggregate indicator of the creditworthiness of...

Persistent link: https://www.econbiz.de/10003755238

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

The distress premium puzzle

Ozdagli, Ali - 2010

Fama and French (1992) suggest that the positive value premium results from risk of financial distress. However, recent empirical research has found that financially distressed firms have lower stock returns, using empirical estimates of default probabilities. This paper reconciles the positive...

Persistent link: https://www.econbiz.de/10008778727

Cash holdings and credit risk

Acharya, Viral V.; Davydenko, Sergei A.; Strebulaev, Ilya A. - 2012

Intuition suggests that firms with higher cash holdings should be 'safer' and have lower credit spreads. Yet empirically, the correlation between cash and spreads is robustly positive. This puzzling finding can be explained by the precautionary motive for saving cash, which in our model causes...

Persistent link: https://www.econbiz.de/10010206259