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Bankruptcy Spillover Effects on Oil and Gas Industry

Nguyen, Khoa - 2019

This paper studies bankruptcy spillover effects onto portfolios of non-bankrupt firms in oil and gas industry. Using hand-collected data on bankruptcy filings in oil and gas industry from 2000 to 2017, I find that, on average, the value-weighted portfolios of non-bankrupt oil and gas firms...

Persistent link: https://www.econbiz.de/10012897166

Endogenous Debt Maturity : Liquidity Risk vs. Default Risk

Manuelli, Rodolfo - 2019

We study the endogenous determination of corporate debt maturity in a setting with default risk. We assume that firms must access the bond market and they issue debt with a flexible structure (coupon, face value, and maturity). Initially, the firm is in a low growth/illiquid state that requires...

Persistent link: https://www.econbiz.de/10012897314

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

Damm, Jason - 2019

liquidation during the debt settlement process. We examine the effect of changes to these protection laws on bank lending to small …

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

The Balance of Power between Creditors and the Firm : Evidence from German Insolvency Law

Closset, Frédéric - 2019

In 2011, German legislators passed the latest reform to German Insolvency Law (ESUG). ESUG mandates that creditors of … larger firms can exert more influence on the appointment of the insolvency administrator, resulting in a shift of power from …

Persistent link: https://www.econbiz.de/10012899200

Valuation Disputes in Corporate Bankruptcy

Ayotte, Kenneth - 2019

Prior scholarship points to valuation disputes and valuation error as key drivers of Chapter 11 outcomes. Avoiding valuation disputes and errors is also the underlying driver of most proposed reforms, from Baird's auctions to Bebchuk's options. In this paper, we undertake a detailed examination...

Persistent link: https://www.econbiz.de/10012899345

Liquidation, Bailout, and Bail-in : Insolvency Resolution Mechanisms and Bank Lending

Lambrecht, Bart M. - 2019

financing policies, and the exposure of bank assets to crashes. The effect of the prevailing insolvency resolution mechanism … (IRM) on the probability of insolvency, loss in default, and the net value created by the bank suggests no single IRM is a …We present a dynamic, continuous-time model in which risk averse inside equityholders set a bank's lending, payout, and …

Persistent link: https://www.econbiz.de/10012900014

The Ex Ante Effect of Creditor Rights on Corporate Financial and Investment Policy

Canipek, Aras - 2019

We examine the ex ante effect of an exogenous reduction in secured creditor rights on corporate financial and investment policy. We find that firms increase corporate leverage using both the reduced distress costs of secured debt and the positive externalities the lower secured creditor rights...

Persistent link: https://www.econbiz.de/10012900028

Rollover Risk and the Dynamics of Debt

Chaderina, Maria - 2018

I study how firms adjust leverage, maturity and cash to manage rollover risk, and show that time-variation in concentration of maturity dates arises endogenously. To avoid rollover risk, firms prefer long-term debt with dispersed maturity dates. However, severe negative shocks force firms to...

Persistent link: https://www.econbiz.de/10012937647

Book-Based vs. Market-Based Indebtedness Ratios in Bankruptcy Prediction on the Polish Capital Market

Welc, Jacek - 2017

Forecasting corporate bankruptcy constitutes an integral and relevant part of financial statement analysis and business valuation. Typically the evaluation of a risk of financial default is based on some ratios, including company's indebtedness. However, there are various versions of such...

Persistent link: https://www.econbiz.de/10012944338

Predictive Analytics as an Instrument to Prevent Bankruptcy

Kiseleva, Elena - 2020

As of today there are a lot of well-known bankruptcy prediction models. Scientists have been paying much attention to the development of bankruptcy prediction models since 1970. However, most of them are unable to predict bankruptcy, thereby making it impossible for firms to prevent it today....

Persistent link: https://www.econbiz.de/10012825141