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The Myth of the Patient Japanese : Corporate Myopia and Financial Distress in Japan and the US

Hall, Brian J. - 1996

It is widely believed that the stock-market oriented US financial system forces corporate managers to behave myopically relative to their Japanese counterparts, who operate in a bank-based system. We hypothesize that if US firms are more myopic than Japanese firms, then episodes of financial...

Persistent link: https://www.econbiz.de/10012473010

Personal Bankruptcy and Credit Supply and Demand

Gropp, Reint - 1996

This paper examines how personal bankruptcy and bankruptcy exemptions affect the supply and demand for credit. While … generous state-level bankruptcy exemptions are probably viewed by most policymakers as benefitting less-well-off borrowers, our … states. Thus, bankruptcy exemptions redistribute credit toward borrowers with high assets …

Persistent link: https://www.econbiz.de/10012473189

Property and Casualty Solvency Funds as a Tax and Social Insurance System

Bohn, James - 1995

When a Property and Casualty (P&C) insurance company becomes insolvent, solvent insurance companies are forced to pay assessments (a form of taxation) to state guarantee funds ('solvency funds') in order to protect the policyholders of the failed companies. We produce estimates of the costs to...

Persistent link: https://www.econbiz.de/10012473671

Mortgage Default and Low Downpayment Loans : The Costs of Public Subsidy

Deng, Yongheng - 1995

This paper presents a unified model of the default and prepayment behavior of homeowners in a proportional hazard framework. The model uses the option-based approach to analyze default and prepayment and considers these two interdependent hazards as competing risks. The results indicate the...

Persistent link: https://www.econbiz.de/10012473695

Do Airlines in Chapter 11 Harm Their Rivals? Bankruptcy and Pricing Behavior in U.S. Airline Markets

Borenstein, Severin - 1995

that airlines in financial distress, particularly those operating under Chapter 11 bankruptcy protection, reduce prices to … and their rivals. The data suggest that an airline's prices typically decline somewhat before it files for bankruptcy …

Persistent link: https://www.econbiz.de/10012473846

Do Unions Make Enterprises Insolvent?

Freeman, Richard B. - 1994

This study investigates the impact of unionization and firm, business line, or establishment survival. A consistent empirical finding is that unions raise wages above those found in nonunion firms, and that in a competitive product market one would expect to find that unionized firms would go...

Persistent link: https://www.econbiz.de/10012474123

The Economics of Bankruptcy Reform

Aghion, Philippe - 1992

We propose a new bankruptcy procedure. Initially, a firm's debts are cancelled, and cash and non-cash bids are …

Persistent link: https://www.econbiz.de/10012474878

Anatomy of Financial Distress : An Examination of Junk-Bond Issuers

Asquith, Paul - 1991

This paper examines the events following the onset of financial distress for 102 public junk bond issuers. We find that out-of-court debt relief mainly comes from junk bond - holders; banks almost never forgive principal, though they do defer payments and waive debt covenants. Asset sales are an...

Persistent link: https://www.econbiz.de/10012475042

A Theory of Workouts and the Effects of Reorganization Law

Gertner, Robert - 1991

We present a model of a financially distressed firm with outstanding bank debt and public debt. Coordination problems among public debtholders introduce investment inefficiencies in the workout process. In most cases, these inefficiencies are not mitigated by the ability of firms to buy back...

Persistent link: https://www.econbiz.de/10012475317

Views on the Likelihood of Financial Crisis

Friedman, Benjamin M. - 1990

A review of major lines of thinking about developments in the 1980s bearing on the likelihood of a financial crisis in the United States supports four principal conclusions:<br>First, financial crises have historically played a major role in large fluctuations in business activity. A financial...

Persistent link: https://www.econbiz.de/10012475624

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