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

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

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

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

Rollover Risk and Credit Risk

He, Zhiguo - 2010

market liquidity and shorter debt maturity can exacerbate this externality and cause costly firm bankruptcy at higher … fundamental thresholds. Our model provides implications on liquidity-spillover effects, the flight-to-quality phenomenon, and …

Persistent link: https://www.econbiz.de/10012462997

Strategic Judgment Proofing

Che, Yeon-Koo - 2008

A liquidity-constrained entrepreneur needs to raise capital to finance a business activity that may cause injuries to …

Persistent link: https://www.econbiz.de/10012464464

Special Purpose Vehicles and Securitization

Gorton, Gary - 2005

Firms can finance themselves on- or off-balance sheet. Off-balance sheet financing involves transferring assets to "special purpose vehicles" (SPVs), following accounting and regulatory rules that circumscribe relations between the sponsoring firm and the SPVs. SPVs are carefully designed to...

Persistent link: https://www.econbiz.de/10012467495

Bankruptcy and Small Firms' Access to Credit

Berkowitz, Jeremy - 2002

In this paper, we investigate how personal bankruptcy law affects small firms' access to credit. When a firm is unincorporated, its debts are personal liabilities of the firm's owner, so that lending to the firm is legally equivalent to lending to its owner. If the firm fails, the owner has an...

Persistent link: https://www.econbiz.de/10012469703