Responding to Shocks and Maintaining Stability in the West
... Union (WAEMU)? How has synchronization evolved over time? Looking at shocks affecting the WAEMU, this chapter explores whether there has been “shock convergence” (i.e., whether shocks have become less asymmetric over time). In a second part, the chapter explores the effectiveness of monetary policy ...
... Union (WAEMU)? How has synchronization evolved over time? Looking at shocks affecting the WAEMU, this chapter explores whether there has been “shock convergence” (i.e., whether shocks have become less asymmetric over time). In a second part, the chapter explores the effectiveness of monetary policy ...
Accruals, Financial Distress, and Debt Covenants Troy D. Janes
... banks) is the production of information. Empirical studies have found significant market reactions to announcements about bank loans indicating that financial market participants behave as though they believe lenders posses unique information. Best and Zhang (1993) find significant market reactions ...
... banks) is the production of information. Empirical studies have found significant market reactions to announcements about bank loans indicating that financial market participants behave as though they believe lenders posses unique information. Best and Zhang (1993) find significant market reactions ...
SWD(2014) 61 final - European Commission
... Out-of-court workouts: Any debtor facing financial difficulties always has the option of negotiating with his creditors the terms and conditions of their contracts. Such amendments may result, for example, in the rescheduling of payments, a reduction in interest rates, a total or partial write-off o ...
... Out-of-court workouts: Any debtor facing financial difficulties always has the option of negotiating with his creditors the terms and conditions of their contracts. Such amendments may result, for example, in the rescheduling of payments, a reduction in interest rates, a total or partial write-off o ...
Discussion paper on the debt write-down tool – bail-in
... scenario. In a going concern scenario, bail-in would be used to absorb losses and recapitalise the entity. The entity would be then restructured and maintained as a going concern. In a liquidation scenario, bail-in would be used to wind down the entity. As mentioned above, one of the features of reo ...
... scenario. In a going concern scenario, bail-in would be used to absorb losses and recapitalise the entity. The entity would be then restructured and maintained as a going concern. In a liquidation scenario, bail-in would be used to wind down the entity. As mentioned above, one of the features of reo ...
Doctoral Dissertation Template
... I extend my analysis on the relation between manager-debtholder incentive alignment and opportunistic income smoothing in two settings. Both settings involve managers with low debt compensation having stronger incentives to hide volatile earnings performance (i.e., opportunistic income smoothing). ...
... I extend my analysis on the relation between manager-debtholder incentive alignment and opportunistic income smoothing in two settings. Both settings involve managers with low debt compensation having stronger incentives to hide volatile earnings performance (i.e., opportunistic income smoothing). ...
Part I – Introduction - LSA
... - Incentive to say that all of capital structure is debt (b/c can deduct interest payments). 1. Is the instrument labeled a debt instrument? 2. Is there a fixed maturity date? Debt by def’n is due at some point in the future; contrast to traditional common shares – no period at which time shares get ...
... - Incentive to say that all of capital structure is debt (b/c can deduct interest payments). 1. Is the instrument labeled a debt instrument? 2. Is there a fixed maturity date? Debt by def’n is due at some point in the future; contrast to traditional common shares – no period at which time shares get ...
Full Report
... sustainability of debt or the likely speed or extent of deleveraging. Our historic case studies include economies that have gone through painful and significant deleveraging with relatively low debt-to-GDP levels, as well as countries that have maintained very high levels for many years. To assess t ...
... sustainability of debt or the likely speed or extent of deleveraging. Our historic case studies include economies that have gone through painful and significant deleveraging with relatively low debt-to-GDP levels, as well as countries that have maintained very high levels for many years. To assess t ...
DollarsDirect - Treasury.gov.au
... of the leaders in the short-term small amount credit industry in Australia, DollarsDirect’s exit would directly harm Australian consumers by removing one of their primary sources for short-term credit. 4. If these rate caps are passed, other legitimate lenders will exit the Australian market. Illega ...
... of the leaders in the short-term small amount credit industry in Australia, DollarsDirect’s exit would directly harm Australian consumers by removing one of their primary sources for short-term credit. 4. If these rate caps are passed, other legitimate lenders will exit the Australian market. Illega ...
ACCT 2301 PP Ch 7
... Sales on Credit and Accounts Receivable Subsidiary Ledger On July 16, Barton, Co. sells $950 of merchandise on credit to Webster Co., and $1,000 of merchandise on account to Matrix, Inc. ...
... Sales on Credit and Accounts Receivable Subsidiary Ledger On July 16, Barton, Co. sells $950 of merchandise on credit to Webster Co., and $1,000 of merchandise on account to Matrix, Inc. ...
Linkages across Sovereign Debt Markets
... by lowering future recoveries because countries can extract more surplus if they renegotiate ...
... by lowering future recoveries because countries can extract more surplus if they renegotiate ...
Tilburg University The Life Cycle of the Firm with
... Sinn (1990, 1991a, 1991b) studies a dynamic life-cycle model of the firm. If retained earnings are a cheaper source of finance than newly issued equity, a young firm issues only a nucleus of new equity. The return on the initial investment is retained and reinvested during an internal growth phase o ...
... Sinn (1990, 1991a, 1991b) studies a dynamic life-cycle model of the firm. If retained earnings are a cheaper source of finance than newly issued equity, a young firm issues only a nucleus of new equity. The return on the initial investment is retained and reinvested during an internal growth phase o ...
Do Tests of Capital Structure Theory Mean What They Say? ∗
... profitability is indeed positively related to leverage at the refinancing points, as one would expect since the model is based on a trade-off argument. In contrast, I show that in a dynamic economy cross-sectional tests produce a negative relationship. The basic intuition is simple: in a world of in ...
... profitability is indeed positively related to leverage at the refinancing points, as one would expect since the model is based on a trade-off argument. In contrast, I show that in a dynamic economy cross-sectional tests produce a negative relationship. The basic intuition is simple: in a world of in ...
Venture Debt Financing for Start
... ones but also to early stage fledglings which do not satisfy traditional banking standards required by debt providers. In contrast, venture debt providers applying different lending model are willing to back negative cash flow ventures despite the inherent funding risk, however, in exchange for requ ...
... ones but also to early stage fledglings which do not satisfy traditional banking standards required by debt providers. In contrast, venture debt providers applying different lending model are willing to back negative cash flow ventures despite the inherent funding risk, however, in exchange for requ ...
1. Recognizing accounts receivable. 2. Valuing accounts receivable
... • To ensure that receivables are not overstated on the balance sheet, they are stated at their net realizable value. • Net realizable value is the net amount expected to be received in cash and excludes amounts that the company estimates it will not be able to collect. ...
... • To ensure that receivables are not overstated on the balance sheet, they are stated at their net realizable value. • Net realizable value is the net amount expected to be received in cash and excludes amounts that the company estimates it will not be able to collect. ...
LESSON 13: FACTORING – THEORETICAL FRAMEWORK
... Under limited factoring, the factor discounts only certain invoices on selective basis and converts credit bills into cash in respect of those bills only. 6. Selected Seller Based Factoring The seller sells all his accounts receivables to the factor along with invoice delivery challans, contracts et ...
... Under limited factoring, the factor discounts only certain invoices on selective basis and converts credit bills into cash in respect of those bills only. 6. Selected Seller Based Factoring The seller sells all his accounts receivables to the factor along with invoice delivery challans, contracts et ...
Liberal Mercantilism: Exchange Rate Regimes, Foreign Currency
... foreign currency. Many countries, and most non-OECD countries, are unable to borrow externally in their domestic currency. This inability is commonly known as “Original Sin” (Eichengreen, Hausmann, and Panizza 2005). Original Sin occurs for a variety of reasons. Foreign investors might not trust dom ...
... foreign currency. Many countries, and most non-OECD countries, are unable to borrow externally in their domestic currency. This inability is commonly known as “Original Sin” (Eichengreen, Hausmann, and Panizza 2005). Original Sin occurs for a variety of reasons. Foreign investors might not trust dom ...
Banking crises and the lending channel: Evidence from industrial
... H.1.c: Banking crises have a less negative effect on bank debt availability and maturity for firms with higher profitability. The effect of banking crises on debt structure might also vary depending on firms' growth opportunities. During normal periods, the TOT theory supports that the higher the gr ...
... H.1.c: Banking crises have a less negative effect on bank debt availability and maturity for firms with higher profitability. The effect of banking crises on debt structure might also vary depending on firms' growth opportunities. During normal periods, the TOT theory supports that the higher the gr ...
What is the Risk of European Sovereign Debt Defaults? Fiscal
... 2010. Prior to the crisis, PIIGS CDS values were quite low, ranging from 8-20 basis points, which are higher than the average for other Euro countries (11 basis points) and about the same as the 18 basis point average for the high income OECD group. During the early months into the global financial ...
... 2010. Prior to the crisis, PIIGS CDS values were quite low, ranging from 8-20 basis points, which are higher than the average for other Euro countries (11 basis points) and about the same as the 18 basis point average for the high income OECD group. During the early months into the global financial ...
Inflation vs Deflation
... three and eight kilograms of grains respectively. Not to mention the amounts of water it takes. The accelerating demand for commodities comes at a time when key commodities like oil and copper run at capacity utilization rates of 96-97%. We are getting closer and closer to a scenario where we are to ...
... three and eight kilograms of grains respectively. Not to mention the amounts of water it takes. The accelerating demand for commodities comes at a time when key commodities like oil and copper run at capacity utilization rates of 96-97%. We are getting closer and closer to a scenario where we are to ...
DebT anD (noT mucH) DeLeveraGInG
... After the global financial crisis hit in 2008, the McKinsey Global Institute began an intensive research effort to understand the magnitude and implications of the global credit bubble that sparked it. In our first report, released in January 2010, we examined growth in debt in the ten largest econo ...
... After the global financial crisis hit in 2008, the McKinsey Global Institute began an intensive research effort to understand the magnitude and implications of the global credit bubble that sparked it. In our first report, released in January 2010, we examined growth in debt in the ten largest econo ...
DebT anD (noT mucH) DeLeveraGInG
... After the global financial crisis hit in 2008, the McKinsey Global Institute began an intensive research effort to understand the magnitude and implications of the global credit bubble that sparked it. In our first report, released in January 2010, we examined growth in debt in the ten largest econo ...
... After the global financial crisis hit in 2008, the McKinsey Global Institute began an intensive research effort to understand the magnitude and implications of the global credit bubble that sparked it. In our first report, released in January 2010, we examined growth in debt in the ten largest econo ...
Optimal Debt and Equity Values in the Presence of Chapter 7 and
... ex ante. Suspension of dividends and the imposition of absolute priority rules (APR) upon entering bankruptcy are very much in the spirit of this goal. We explicitly track suspended dividends in our model and use them to repay the coupons accumulated in arrears as a result of the automatic stay prov ...
... ex ante. Suspension of dividends and the imposition of absolute priority rules (APR) upon entering bankruptcy are very much in the spirit of this goal. We explicitly track suspended dividends in our model and use them to repay the coupons accumulated in arrears as a result of the automatic stay prov ...
Chapter 2 & 9
... Code Sec. 721. Therefore, the partner isn’t required to treat the contribution of such notes as a disposition. To the extent the value of the note exceeds its tax basis at the time of contribution, gross profit subsequently recognized by the partnership on receipt of payments on the note must be all ...
... Code Sec. 721. Therefore, the partner isn’t required to treat the contribution of such notes as a disposition. To the extent the value of the note exceeds its tax basis at the time of contribution, gross profit subsequently recognized by the partnership on receipt of payments on the note must be all ...
PLI Text Article
... A modification is tested when the parties agree to a change, even if the change is not immediately effective.27 The regulations provide exceptions for a change in a term that is agreed to by the parties but is subject to reasonable closing conditions or that occurs as a result of bankruptcy proceedi ...
... A modification is tested when the parties agree to a change, even if the change is not immediately effective.27 The regulations provide exceptions for a change in a term that is agreed to by the parties but is subject to reasonable closing conditions or that occurs as a result of bankruptcy proceedi ...
Utility Cost of Capital
... • Imagine a rental house that costs $100,000 can be rented for a $10,000 annual profit after all expenses. • If the house is financed with all equity the return is 10%. • However, if 90% of the money can be borrowed at 5%, then the net profit will be $10,000 minus $90,000 times 0.05 or $10,000 minus ...
... • Imagine a rental house that costs $100,000 can be rented for a $10,000 annual profit after all expenses. • If the house is financed with all equity the return is 10%. • However, if 90% of the money can be borrowed at 5%, then the net profit will be $10,000 minus $90,000 times 0.05 or $10,000 minus ...