Corporate Distress and Restructuring with Macroeconomic Fluctuations: The Cases of GM and Ford

Arbeitspapier

Traditional methods for evaluating corporate credit risk rarely consider the impact of the macro economy on corporate value and performance. We argue that lenders and management can obtain valuable information about the need for and approach to restructuring by decomposing default predictions into intrinsic and macroeconomic factors. We apply a method previously used for measuring macroeconomic exposures on default predictions in order to filter out macroeconomic factors. In this paper the method is applied on an analysis of the Z-scores for GM and Ford for the period 1996–2005. The macro economy has affected the two firms in different ways with implications for managements' and creditors' approaches to restoring their financial health.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IFN Working Paper ; No. 780

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Portfolio Choice; Investment Decisions ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; Bankruptcy; Liquidation ; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance ; Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices ; Automobiles; Other Transportation Equipment; Related Parts and Equipment
• Thema: Credit Risk ; Creditworthiness ; Z-Scores ; Default Predictions ; Ford ; Restructuring ; Macroeconomic Exposure ; Insolvenz ; Kreditrisiko ; Konjunktur ; Dekompositionsverfahren ; Prognoseverfahren ; Kraftfahrzeugindustrie ; USA

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Oxelheim, Lars ; Wihlborg, Clas
• Ereignis: Veröffentlichung
• (wer): Research Institute of Industrial Economics (IFN)
• (wo): Stockholm
• (wann): 2009

Weitere Informationen

• Handle: http://hdl.handle.net/10419/81483
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ