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Livshits, Igor; MacGee, James; Tertilt, Michèle - C.E.P.R. Discussion Papers - 2011

Financial innovations are a common explanation of the rise in consumer credit and bankruptcies. To evaluate this story, we develop a simple model that incorporates two key frictions: asymmetric information about borrowers’ risk of default and a fixed cost to create each contract offered by...

Persistent link: https://www.econbiz.de/10009322977

Enterprise Debt and Economic Transformation: Financial Restructuring of the State Sector in Central and Eastern Europe

Begg, David; Portes, Richard - C.E.P.R. Discussion Papers - 1992

payments of principal and interest to creditors, who in turn have strong incentives not to declare bankruptcy. In such …

Persistent link: https://www.econbiz.de/10005123729

Are Russian Commercial Courts Biased? Evidence from a Natural Bankruptcy Experiment

Lambert-Mogiliansky, Ariane; Sonin, Konstantin; … - C.E.P.R. Discussion Papers - 2006

We study the nature of judicial bias in bankruptcy proceedings following the enactment of bankruptcy law in Russia in … 1998. We find that regional political characteristics affected judicial decisions about the numbers and types of bankruptcy … bankruptcy; while the opposite was true in regions with high-quality judges. The effect of judicial quality on restructuring is …

Persistent link: https://www.econbiz.de/10005123934

Control Benefits and CEO Discipline in Automatic Bankruptcy Auctions

Eckbo, B Espen; Thorburn, Karin S - C.E.P.R. Discussion Papers - 2002

empirically using bankruptcy filings in Sweden, where a filing automatically terminates CEO employment and requires the firm to be … sold in an open auction. The median CEO income loss is a dramatic 40%, suggesting that bankruptcy filing damages CEO … CEO being rehired by the buyer in the auction, as predicted. Moreover, we find that the rehired CEOs generate a post-bankruptcy …

Persistent link: https://www.econbiz.de/10005123993

Back to Keynes?

van der Ploeg, Frederick - C.E.P.R. Discussion Papers - 2005

After a brief review of classical, Keynesian, New Classical and New Keynesian theories of macroeconomic policy, we assess whether New Keynesian Economics captures the quintessential features stressed by JM Keynes. Particular attention is paid to Keynesian features omitted in New Keynesian...

Persistent link: https://www.econbiz.de/10005504355

Multiple Lenders and Corporate Distress: Evidence on Debt Restructuring

Brunner, Antje; Krahnen, Jan Pieter - C.E.P.R. Discussion Papers - 2004

In the recent theoretical literature on lending risk, the common pool problem in multi-bank relationships has been analysed extensively. In this Paper we address this topic empirically, relying on a unique panel dataset that includes detailed credit-fie information on distressed lending...

Persistent link: https://www.econbiz.de/10005504452

Business Debt and Default in France

Bordes, Christian; Melitz, Jacques - C.E.P.R. Discussion Papers - 1989

On the basis of quarterly data in 1977-87 and the use of the Engle-Granger method of co-integration, we find that real and financial factors, insolvency and illiquidity, are all important, separate influences on the defaults of French firms. We capture the effect of illiquidity by constructing...

Persistent link: https://www.econbiz.de/10005504522

Competition, Financial Discipline and Growth

Aghion, Philippe; Dewatripont, Mathias; Rey, Patrick - C.E.P.R. Discussion Papers - 1999

This paper develops a general equilibrium model of technological adoption in an economy populated by 'satisficing' entrepreneurs whose main objective is to minimise innovative effort while keeping the firm alive. In such an economy, product market competition is shown to have a stimulating...

Persistent link: https://www.econbiz.de/10005504632

Ex Ante Costs of Violating Absolute Priority in Bankruptcy

Bebchuk, Lucian Arye - C.E.P.R. Discussion Papers - 2001

A basic question for the design of bankruptcy law concerns whether value should be divided in accordance with absolute …

Persistent link: https://www.econbiz.de/10005656137

Debt Portfolios

Hintermaier, Thomas; Koeniger, Winfried - C.E.P.R. Discussion Papers - 2011

by owner-occupied housing whereas unsecured debt can be discharged according to bankruptcy regulations. We show that the … in homestead exemptions, which are an important part of U.S. bankruptcy regulation, have a small effect on the quantity …

Persistent link: https://www.econbiz.de/10009001063