Similar Search Results

Beck, Thorsten - 2003

We examine the impact of bank supervision on the financing obstacles faced by almost 5,000 corporations across 49 countries. We find that firms in countries with strong official supervisory agencies that directly monitor banks tend to face greater financing obstacles. Moreover, powerful official...

Persistent link: https://www.econbiz.de/10012469078

Testing Macroprudential Stress Tests : The Risk of Regulatory Risk Weights

Acharya, Viral V. - 2013

Macroprudential stress tests have been employed by regulators in the United States and Europe to assess and address the solvency condition of financial firms in adverse macroeconomic scenarios. We provide a test of these stress tests by comparing their risk assessments and outcomes to those from...

Persistent link: https://www.econbiz.de/10012459694

Debt Restructuring

Friedman, Benjamin M. - 2000

What difference does it make, and for whom, whether the nonperforming debts of emerging market borrowers are restructured? This paper begins by positing a set of counterfactual conditions under which restructuring would not matter, and then shows how several ways in which the actual world of...

Persistent link: https://www.econbiz.de/10012471039

Measuring, Forecasting and Explaining Time Varying Liquidity in the Stock Market

Engle, Robert F. - 1997

The paper proposes a new measure, VNET, of market liquidity which directly measures the depth of the market. The … over time high volumes are associated with an influx of informed traders and reduce market liquidity. High expected …

Persistent link: https://www.econbiz.de/10012472683

Endogenous Mortgage Choice, Borrowing Constraints and the Tenure Decision

LaFayette, William C. - 1995

Earlier research has shown that lender income and wealth constraint ratios discourage homeownership. This empirical research has been based on home purchasers using an 80 percent loan-to-value (LTV) fixed-rate conventional loan. Employing the same assumption, we find that the constraints lowered...

Persistent link: https://www.econbiz.de/10012473815

Taxation, Corporate Capital Structure, and Financial Distress

Gertler, Mark L. - 1989

Is corporate leverage excessive? Is the tax code distorting corporate capital structure decisions in a way that increases the possibility of an economic crisis owing to "financial instability"? <bR><bR>Answering these kinds of questions first requires some precision in terminology. In this paper, we...

Persistent link: https://www.econbiz.de/10012475835

Real and Financial Decisions of a Firm with Bankruptcy and Default : An Integration

Hayashi, Fumio - 1983

This paper attempts to provide a framework for analyzing the interaction between real decisions (concerning investment and factor inputs)and financial decisions (concerning debt and new share issues) of a corporation. The model carries a rich menu of tax rates and explicitly incorporates...

Persistent link: https://www.econbiz.de/10012478005

Renegotiation in Debt Chains

Glode, Vincent - 2020

We develop a tractable model of strategic debt renegotiation in which businesses are sequentially interconnected through their liabilities. This financing structure, which we refer to as a debt chain, gives rise to externalities as a lender's willingness to provide concessions to his...

Persistent link: https://www.econbiz.de/10012482102

Liquidity Risk of Corporate Bond Returns : A Conditional Approach

Acharya, Viral V. - 2010

We study the exposure of the US corporate bond returns to liquidity shocks of stocks and Treasury bonds over the period … 1973 - 2007 in a regime - switching model. In one regime, liquidity shocks have mostly insignificant effects on bond prices … default), suggest the existence of time-varying liquidity risk of corporate bond returns conditional on episodes of flight to …

Persistent link: https://www.econbiz.de/10012462262

Asset Liquidity and the Cost of Capital

Ortiz-Molina, Hernán - 2010

We study the effect of real asset liquidity on a firm's cost of capital. We find an aggregate asset-liquidity discount … in firms' cost of capital that is strongly counter-cyclical. At the firm-level we find that asset liquidity affects firms … periods of high asset liquidity have lower cost of capital. This effect is stronger when the asset liquidity is provided by …

Persistent link: https://www.econbiz.de/10012462661