Modern institutes of the market form new factors of the global economy. Stock exchanges, other institutes of the investment market, financial Internet communications create the integrated pace of world economic system. The companies test direct influence from global information-financial space....

In article the problem of systemic market efficiency of the enterprise is considered. It is offered to estimate systemic effect of the enterprise concerning market rate of efficiency. The systemic effect is treated as the specified size of the residual income. In the article The concept of the...

The problem of Business Systemic Efficiency becomes actual in the conditions of financial crisis. In article the concept and ways of calculation of Business Systemic Efficiency is considered. The approach to enterprise classification by Business Systemic Efficiency Criterion is shown. Definition...

In this paper, we compare different methods for computing default probabilities using a sample of banks that experienced financial distress during the 2007–2009 global financial crisis. The traditional KMV-Merton model for firm valuation, credit ratings by rating agencies and a recently...

This chapter, for the Oxford Handbook of Corporate Governance, provides a survey of law, economics, and finance scholarship at the intersection of corporate governance and financial distress. In financial distress, both inside and outside of bankruptcy court, formal and informal control rights...

'Cash is king' and, presumably, will remain king for a long time to come. This is even more relevant since the financial crisis. Banks are now hesitant to provide credit lines to companies, whether national or cross-border. High interest rates are charged on debit amounts, but hardly any...

We propose a unified structural credit risk model incorporating insolvency, recovery and rollover risks. The firm finances itself mainly by issuing short- and long-term debt. Short-term debt can have either a discrete or a more realistic staggered tenor structure. We show that a unique threshold...

The main provisions of the new Law on the Financial Management of Enterprises (LFME) became fully effective in January 2000. The new legislation's motivation was to improve the ability to pay and bolster payment discipline in the Slovenian economy. Besides reducing the number of enterprises with...

This paper develops a new model of debt renegotiation in a structural framework, that accounts for both taxes and bankruptcy costs. We investigate situations where the manager can optimally (on behalf of the equity holder) impose a permanent coupon reduction to creditors, given that the new...