Similar Search Results

The impact of consumer credit access on self-employment and entrepreneurship

Herkenhoff, Kyle; Phillips, Gordon M.; Cohen-Cole, Ethan - 2018

We examine how consumer credit access impacts self-employment and small business ownership by building a new dataset that links 3 million individual earnings and credit reports to pass-through tax records. We show that self-employment and employer business ownership increase with personal credit...

Persistent link: https://www.econbiz.de/10012104568

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

The bank as grim reaper : debt composition and bankruptcy thresholds

Carey, Mark S.; Gordy, Michael B. - 2016

We offer a model and evidence that private debtholders play a key role in setting the endogenous asset value threshold below which corporations declare bankruptcy. The model, in the spirit of Black and Cox (1976), implies that the recovery rate at emergence from bankruptcy on all of the firm's...

Persistent link: https://www.econbiz.de/10011578370

Validation of the Merton distance to the default model under ambiguity

Chen, Wei-ling; So, Leh-chyan - In: Journal of risk and financial management : JRFM 7 (2014) 1, pp. 13-27

Bharath and Shumway (2008) provide evidence that shows that it is the functional form of Merton’s (1974) distance to default (DD) model that makes it useful and important for predicting defaults. In this paper, we investigate whether the default predictability of the Merton DD model would be...

Persistent link: https://www.econbiz.de/10011553338

Banking reform

Jackson, Patricia; Davies, Howard; Miles, David; … - SUERF Conference on Banking Reform <2015, London>; … - 2016

On 3 December EY hosted a SUERF conference on banking reform with Sir Howard Davies, the Chairman of RBS, and Dame Colette Bowe, the Chairman of the Banking Standards Board, as the two keynote speakers. Professor David Miles (Imperial College) gave the SUERF 2015 Annual Lecture on Capital and...

Persistent link: https://www.econbiz.de/10011554963

Obvious and hidden features of corporate default in bankruptcy models

Kuběnka, Michal; Myšková, Renáta - In: Journal of business economics and management 20 (2019) 2, pp. 368-383

The aim of this article is to prove the key role of the structure of the research sample used for accuracy determining on the accuracy of bankruptcy models. The creators of these models report the accuracy usually in the range of 60 to 90%. The authors of this article claim that these values are...

Persistent link: https://www.econbiz.de/10012175694

The analysis of the bankruptcy of enterprises exemplified by the Visegrad Group

Krajewski, Jarosław; Tokarski, Andrzej; Tokarski, Maciej - In: Journal of business economics and management 21 (2020) 2, pp. 593-609

The phenomenon of enterprises bankruptcy is an extremely complex process of economic, legal, social and even psychological nature. In the developed countries, the first studies on forecasting bankruptcy date to the early 20th century. In Central and Eastern Europe, due to, among other factors,...

Persistent link: https://www.econbiz.de/10012197644

EBITDA vs. cash flows in bankruptcy prediction on the Polish capital market

Jacek, Welc - In: European financial and accounting journal : EFAJ 12 (2017) 2, pp. 91-103

One of the elements of company’s evaluation is an analysis of bankruptcy risk metrics. In this study, the accuracy of bankruptcy predictions generated by EBITDA-based and cash flow-based liabilities-coverage ratios is evaluated within a sample of data from the Polish market. The study is based...

Persistent link: https://www.econbiz.de/10011707200

Firm leverage, labor market size, and employee pay

Dore, Timothy E.; Zarutskie, Rebecca - 2017

We provide new estimates of the wage costs of firms' debt. Our empirical approach exploits within-firm geographical variation in workers' expected unemployment costs due to variation in local labor market size and uses a large representative sample of public firms. We find that, following an...

Persistent link: https://www.econbiz.de/10011710130

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