Similar Search Results

Small Business Financial Distress and the 'Phoenix Syndrome' — A Re-Evaluation

Rotem, Yaad - 2013

In a typical "phoenix syndrome" scenario, a small business entrepreneur who controls the financially distressed Company A registers Company B, to which the assets of Company A are transferred in what appears to be fraudulent conveyance. Company B serves as a vehicle through which the business is...

Persistent link: https://www.econbiz.de/10013071900

Changes in Personal Bankruptcy Protection Laws : The Impact on Bank Lending to Small Businesses

Damm, Jason - 2019

In the U.S., individual parties who file for bankruptcy can exempt a certain dollar amount of property from creditor liquidation during the debt settlement process. We examine the effect of changes to these protection laws on bank lending to small businesses. Our results indicate that additional...

Persistent link: https://www.econbiz.de/10012898163

A Study of Applicability of Bankruptcy Prediction Models for Small Businesses

Kiseleva, Elena - 2020

The paper investigates predictive ability of existing bankruptcy prediction models suitable for small business by using dates of accounting report of Russian's firms. Combination of financial ratios analysis with bankruptcy prediction models' testing made it possible to identify the models...

Persistent link: https://www.econbiz.de/10012825156

Bankruptcy Prediction : SMEs Case Study in Pontianak, Indonesia

Hamzani, Umiaty - 2018

that neither of the SME groups are predicted bankrupt under the financial distress model. Furthermore, the independent …

Persistent link: https://www.econbiz.de/10012924028

Insolvency Risk of European SMEs during Pandemic

Kaya, Orcun - 2021

, this paper focuses on the insolvency risk of European SMEs and their access to finance around pandemic. We show that SME … have contributed notably to SME insolvency risk around this period. Heightened insolvency risk results in deterioration in … the European economy. Using a unique firm‐level survey data on SME financing conditions and a new measurement approach …

Persistent link: https://www.econbiz.de/10013238147

Clustering Default Syndromes Across Italian SMEs

Modina, Michele; Zedda, Stefano - 2021

The quantitative analyses related to firms’ default prediction extensively analyzed which balance sheet ratios include significant information on the probability of default of a firm. These analyses are typically aimed at measuring a generic default risk, while no analyses are aimed at...

Persistent link: https://www.econbiz.de/10013242550

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

Debt Refinancing and Credit Risk

Forte, Santiago - 2012

Many firms choose to refinance their debt. We investigate the long run effects of this extended practice on credit ratings and credit spreads. We find that debt refinancing generates systematic rating downgrades unless a minimum firm value growth is observed. Deviations from this growth path...

Persistent link: https://www.econbiz.de/10013115613

Pandemic Exposure, Credit Market Reactions, and Corporate Default Risk

Imerman, Michael B.; Ye, Xiaoxia; Zhao, Ran - 2021

We develop a theoretical model quantifying how firm-level pandemic exposure and sentiment, as informational shocks, affect a firm’s credit spread and default risk. Consistent with model predictions, we find significantly positive impacts on single-name credit default swap (CDS) spreads from...

Persistent link: https://www.econbiz.de/10013225671

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