This paper documents a set of new stylized facts about leverage and financial fragility for emerging market firms following the Global Financial Crisis (GFC). Corporate debt vulnerability indicators during the Asian Financial Crisis (AFC) attributed to corporate financial roots provide a...

A review of major lines of thinking about developments in the 1980s bearing on the likelihood of a financial crisis in the United States supports four principal conclusions:First, financial crises have historically played a major role in large fluctuations in business activity. A financial...

Objective – This paper shows how leverage affects firm's fragility and financial soundness during financial and industry crises.Methodology/Technique – Long term inefficient and zombie firms are explored through the effects of leverage in additional tests.Findings – There are two main...

At the macro level, recent policy-relevant research establishes an association between credit booms and banking distress; the focus is on leverage. However, scant evidence is available at the micro level. This study analyses the relationship between lending growth, leverage, and distress at the...