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Full-Text Articles in Social and Behavioral Sciences
An Analysis Of Second Time Around Bankruptcies Using A Split-Population Duration Model, Arindam Bandopadhyaya, Sanjiv Jaggia
An Analysis Of Second Time Around Bankruptcies Using A Split-Population Duration Model, Arindam Bandopadhyaya, Sanjiv Jaggia
Arindam Bandopadhyaya
A significant proportion of firms that reorganize under Chapter 11 file for a second Chapter 11 protection or liquidate. We use a "split-population" duration model that provides useful information regarding factors that could lead to a second bankruptcy. We find that the probability (hazard) of a firm re-entering bankruptcy is lower for firms that take a long time to reorganize, reduce their debt-to-assets ratio, do not divest, belong to an industry that has low capacity utilization and low demand growth. We also find that the probability of an average firm re-entering bankruptcy increases for about 4 years before declining.
Industry Contagion In Loan Spreads, Michael G. Hertzel, Micah S. Officer
Industry Contagion In Loan Spreads, Michael G. Hertzel, Micah S. Officer
Finance Faculty Works
Spreads on new and renegotiated corporate loans are significantly higher when the loan originates (or is renegotiated) in the two years surrounding bankruptcy filings by industry rivals. This industry-specific contagion is particularly severe in the middle of industry bankruptcy waves. Furthermore, this contagion in loan spreads is mitigated in concentrated industries, consistent with the hypothesis and evidence in Lang and Stulz (1992) that bankruptcy filings in concentrated industries can have positive consequences for rivals (increased market share and/or power). There is also some evidence that contagion affects non-spread terms in loan contracts.
Essays On Corporate Default Risk And Equity Return, Gang Liu
Essays On Corporate Default Risk And Equity Return, Gang Liu
Legacy Theses & Dissertations (2009 - 2024)
The theme of this dissertation is to predict firm's default risk from different approaches, and evaluate the effect of default risk on cross-sectional stock returns.
United States Sovereign Debt: A Thought Experiment On Default And Restructuring, Charles W. Mooney Jr.
United States Sovereign Debt: A Thought Experiment On Default And Restructuring, Charles W. Mooney Jr.
All Faculty Scholarship
This chapter adopts the working assumption that it is conceivable that at some time in the future it would be in the interest of the United States to restructure its sovereign debt (i.e., to reduce the principal amount). It addresses in particular U.S. Treasury Securities. The chapter first provides an overview of the intermediated, tiered holding system for book-entry Treasuries. For the first time the chapter then explores whether and how—logistically and legally—such a restructuring could be effected. It posits the sort of dire scenario that might make such a restructuring advantageous. It then outlines a novel scheme …