under limited liability should be characterized by higher than average insolvency and employment growth rates. We test these … characterized by higher growth and higher insolvency rates than comparable firms under full liability. Surprisingly, the likelihood … liquidation, while the propensity to insolvency is not affected by the owner’s age. The basic empirical results hold in pooled …

driving asset prices to ‘overshoot’ equilibrium when an asset bubble bursts - threatening widespread insolvency and what …

, especially, the financial cost of filing for bankruptcy. We study the effects of the reform on bankruptcy, insolvency, and …. We find that the decline in bankruptcy filings resulted in a rise in the rate and persistence of insolvency as well as an … that insolvency is associated with worse financial outcomes than bankruptcy, as insolvent individuals have less access to …

, and it also has a positive and significant effect on their market values. Our results are consistent with the theory that …

We base a contracting theory for a start-up firm on an agency model with observable but nonverifiable effort, and …

This Paper reports a new test of capital structure theories. It uses a filtering technique to identify large investment …

decrease, depending on the type of political risk. Using the Microdatabase Direct Investment of the Deutsche Bundesbank, we … political risk. We focus on two choice variables, the leverage and the ownership structure of the foreign affiliate, and we … distinguish different types of political risk, such as expropriation, corruption and confiscatory taxation. In our theoretical …

This Paper analyses the effect of dynamic capital structure adjustments on credit risk. Firms may optimally adjust … find that the underestimation of credit spreads and expected default frequencies is exacerbated when the risk … it is shown that the Value-at-Risk of corporate bonds increases with the distance to default (DD) both for very low and …

We examine the risk-return characteristics of a rolling portfolio investment strategy where more than six thousand … turnover and low leverage, which may lower systematic risk exposures. To examine this possibility, we launch an easily … constructed ‘low minus high’ (LMH) stock turnover portfolio as a liquidity risk factor. The LMH factor produces significant betas …

efficient insolvency systems. …