Arbeitspapier
Testing the impact of liquidation speed on leverage using Indian data
The paper investigates the influence of the speed of liquidation of insolvent firms on leverage. The theoretical model presented formalizes the intuitive view that an increase in liquidation speed is expected to decrease average leverage as highly leveraged firms exit. Analysis of Indian data, however, suggests that an increase in liquidation speed increases average leverage. This finding is linked to influential observations at the right tail of the leverage distribution. We propose an asset-weighted variant of the proposition that holds with empirical data.
- Sprache
-
Englisch
- Erschienen in
-
Series: BOFIT Discussion Papers ; No. 6/2024
- Klassifikation
-
Wirtschaft
Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
Firm Behavior: Empirical Analysis
Bankruptcy; Liquidation
Personal Bankruptcy Law
- Thema
-
Indian economy
insolvency and bankruptcy code
liquidation speed
leverage
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Banerjee, Biswajit
Herrala, Risto
- Ereignis
-
Veröffentlichung
- (wer)
-
Bank of Finland, Bank of Finland Institute for Emerging Economies (BOFIT)
- (wo)
-
Helsinki
- (wann)
-
2024
- URN
-
urn:nbn:fi-fe2024042923354
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Banerjee, Biswajit
- Herrala, Risto
- Bank of Finland, Bank of Finland Institute for Emerging Economies (BOFIT)
Entstanden
- 2024
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