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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

Is bankruptcy costly? : recent evidence on the magnitude and determinants of indirect bankruptcy costs

Singh, Bhabra Gurmeet; Yao, Yuan - In: Journal of applied finance & banking 1 (2011) 2, pp. 39-68

In this study we estimate indirect bankruptcy costs for a recent sample of large corporate bankruptcies in the United States over the period, 1997 to 2004. We find indirect bankruptcy costs of approximately 2%, 6.2% and 14.9% of firm value in years -3, -2 and -1 relative to the year of...

Persistent link: https://www.econbiz.de/10009536170

Financial Statements as Sole Predictors of Financial Distress : The Need for New Financial Ratios

Assaad Khalil, Karim Wagih - 2011

Four new ratios, that capture firms' Stability, Downside Risk and Audit Quality, are significant predictors of financial distress as evidenced by bankruptcy. Moreover, they improve substantially a logit based credit metric when combined with other classic ratios. A credit metric that comprises a...

Persistent link: https://www.econbiz.de/10013127905

The Economic Logic of the Lease/Loan Distinction in Bankruptcy

Hemel, Daniel Jacob - 2011

The Bankruptcy Code accords much more favorable treatment to lessors than to secured lenders, but legal scholars have yet to identify a normative justification for the disparate treatment of the two transaction types. Law-and-economics scholars have written off the lease/loan distinction as...

Persistent link: https://www.econbiz.de/10013128158

Financial Distress : Public vs. Private Firms

Anagnostopoulou, Seraina C. - 2011

Recent evidence suggests that private firms in the United Kingdom rely heavily on debt financing, have leverage ratios significantly higher than their public counterparts, and their access to external sources of capital remains limited. We extend these findings by examining the implications of...

Persistent link: https://www.econbiz.de/10013132230

Private Equity, Buy-Outs and Insolvency Risk

Wilson, Nick - 2011

set comprising the population of over eight million company year observations and 153,000 instances of insolvency covering … formal insolvency proceedings than other firms and how this varies over the economic cycle. Controlling for size, age, sector … and macro-economic conditions (base hazard) we find that private-equity backed buyouts are no more prone to insolvency …

Persistent link: https://www.econbiz.de/10013123344

The Brazilian Bankruptcy Law Experiment

Araujo, Aloisio Pessoa de - 2011

variables, we found a reduction in the bank debt to public debt ratio, an increase in the number of domestic loan contracts and …

Persistent link: https://www.econbiz.de/10013124559

Cash Pooling and Insolvency : A Practical Global Handbook - Switzerland

Christ, Benedict F. - 2012

. Not only are regulatory constraints tightening by the day, but the risk of insolvency is also becoming an increasingly … pooling and insolvency. Each chapter follows the same template for ease of reference; topics featured include specific legal ….This practical handbook is an essential guide for any insolvency professional, in-house counsel or adviser in banking and finance …

Persistent link: https://www.econbiz.de/10013100209

CDS and the Resolution of Financial Distress

Lubben, Stephen J. - 2012

Over the last decade, the availability of credit default swaps (CDS) has dramatically transformed the markets for credit insurance by providing participants efficient avenues through which to share credit risks. These risk-sharing benefits notwithstanding, the growth of credit default swaps...

Persistent link: https://www.econbiz.de/10013100244

Can Creditors Restrict Managerial Investment Behavior in Distressed Firms?

Pryshchepa, Oksana - 2012

Shareholders in distressed firms should profit from shifting to more risky assets, but there is little empirical evidence documenting such behavior. We find that this weak evidence is consistent with creditors being somewhat able to control the investment policies of distressed firms if distress...

Persistent link: https://www.econbiz.de/10013101646