The aim of the paper is to analyze the main goals of bankruptcy procedures and the different facets of their efficiency, which can be investigated according to an ex post or ex ante perspective.Unlike previous literature, which has mainly hypothesized a contrast between these two viewpoints, in...

We estimate the impact of the COVID-19 crisis on business failures among small and medium-size enterprises (SMEs) in seventeen countries using a large representative firm-level database. We use a simple model of firm cost minimization and measure each firm’s liquidity shortfall during and...

The quantitative analyses related to firms’ default prediction extensively analyzed which balance sheet ratios include significant information on the probability of default of a firm. These analyses are typically aimed at measuring a generic default risk, while no analyses are aimed at...

Within bank activities, which is normally defined as the joint exercise of savings collection and credit supply, risk-taking is natural, as in many human activities. Among risks related to credit intermediation, credit risk assumes particular importance. It is most simply defined as the...

Climate change poses severe systemic risks to the financial sector through multiple transmission channels. In this paper, we estimate the potential impact of different carbon taxes (€50, €100, €200 and €800 per ton of CO2) on the Italian banks’ default rates at the sector level in the...

The Reform of the Bankruptcy Act carried out in Italy in 2005-2007 introduced two forms of workout agreements (out-of-court reorganization plans and court-controlled multi-party agreements). The two devices are mainly conceived as a safe harbour from fraudulent conveyance and preference law. A...