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Corporate Pensions and Financial Distress

Duan, Ying - 2015

We examine the role of corporate pension plans in determining how firms restructure in financial distress. Both defined benefit (DB) and defined contribution (DC) plans can have significant exposures to the company's own stock, imposing significant losses on employees if the firm defaults and/or...

Persistent link: https://www.econbiz.de/10013030278

Creating a Template for Banking Insolvency Law Reform after the Collapse of Northern Rock

Tomasic, Roman - 2009

The passage of the Banking Act 2009 (UK) was a major landmark in the development of legal tools for the handling of banks in financial difficulties in the United Kingdom. The Act has emerged from over a year of economic crisis and from politically charged debates and consultations that followed...

Persistent link: https://www.econbiz.de/10013159109

Personal bankruptcy law, wealth and entrepreneurship : theory and evidence from the introduction of a "fresh start"

Fossen, Frank M. - 2011

, but tend not to face higher interest rates because they provide collateral. This paper illustrates these effects in a …

Persistent link: https://www.econbiz.de/10008826701

Personal bankcuptcy law, wealth and entrepreneurship : theory and evidence from the introduction of a "fresh start"

Fossen, Frank M. - 2011

tend not to face higher interest rates because they provide collateral. This paper illustrates these effects in a model and … entrepreneurship. -- Personal bankruptcy law ; insolvency ; entrepreneurship ; fresh start …

Persistent link: https://www.econbiz.de/10009008042

Personal bankruptcy law, wealth and entrepreneurship : theory and evidence from the introduction of a "fresh start"

Fossen, Frank M. - 2011

tend not to face higher interest rates because they provide collateral. This paper illustrates these effects in a model and … entrepreneurship. -- personal bankruptcy law ; insolvency ; entrepreneurship ; fresh start …

Persistent link: https://www.econbiz.de/10009126032

Personal bankruptcy law, wealth and entrepreneurship : theory and evidence from the introduction of a "fresh start“

Fossen, Frank M. - 2011

Persistent link: https://www.econbiz.de/10009308943

Second liens and the holdup problem in mortgage renegotiation

Agarwal, Sumit; Amromin, Gene; Ben-David, Itzhak; … - 2014

When borrowers are delinquent, senior debtholders prefer liquidation whereas junior debtholders prefer to maintain their option value by delaying resolution or modifying the loan. In the mortgage market, a conflict of interest (“holdup”) arises when servicers of securitized senior liens are...

Persistent link: https://www.econbiz.de/10010353293

Risky financial collateral, firm heterogeneity, and the impact of eligibility requirements

Kaldorf, Matthias; Wicknig, Florian - 2021 - This version: October 26, 2021

This paper studies the effects of making corporate sector assets eligible as collateral for central bank borrowing …. Banks are willing to pay collateral premia on assets if they become eligible as collateral. Collateral premia make debt … collateral supply, firm responses also have a negative effect: higher debt issuance makes corporate bonds riskier in future …

Persistent link: https://www.econbiz.de/10012663068

Asset Exemption in Entrepreneurs’ Bankruptcy and the Informative Role of Collateral

Deidda, Luca - 2019

-exempt assets are liquidated. Entrepreneurs can undo this “insurance” by posting collateral. The opportunity cost of doing so is … exemption increases, collateral becomes a more effective sorting device. As a result, an entrepreneur's decision to post … collateral improves access to credit and reduces the cost of credit to a greater extent the larger the exemption is. Econometric …

Persistent link: https://www.econbiz.de/10012860929

Economics of Bankruptcy Exemption : Signaling Value of Collateral, Cost of Credit and Access to Credit

Arca, Pasqualina - 2019

adverse selection (AS). In particular, we study how the level of such exemption affects the role of collateral depending on … higher for borrowers who are requested to post collateral. Moreover, conditional on posting collateral, the cost of credit … does not change with the level of asset exemption. Differently, in the case of AS, the decision to post collateral results …

Persistent link: https://www.econbiz.de/10012862259