How does bank distress impact their customers' probability of default and trade credit availability? We address this … question by looking at a unique sample of German firms from 2000 to 2011. We follow their firm-bank relationships through times … of distress and crisis, featuring the different transmission of bank distress shocks into already weakened firm balance …

bankruptcy costs, which first magnify jumps of lending rates and then delay their recoveries by restricting the generation of …

the financial crisis 2008-09 was significantly higher for firms with a "weak" bank than for comparable firms with a "sound …" bank. Second, non-defaulting firms with a "weak" bank did not have a lower return on assets during the financial crisis … 2008-09 than comparable firms with a "sound" bank. Taken together, these results may indicate the presence of heterogeneous …

during the crisis was significantly higher for firms with a “weak” bank than for comparable firms with a “sound” bank– even …

We develop a model of neural networks to study the bankruptcy of U.S. banks. We provide a new model to predict bank … defaults some time before the bankruptcy occurs, taking into account the specific features of the current financial crisis … efficiency than their wealthy counterparts, suggesting that bank failures are a consequence of careless bank strategies rather …

strategically utilize the renegotiation option as a bankruptcy threat, pushing down the debt value below the potential liquidation …

We examine whether corporate bankruptcies influence bank loan characteristics of geographically proximate firms …. Controlling for industry contagion and local economic conditions, firms headquartered near a bankruptcy event experience a seven …