Financial and economic determinants of firm default

Marco Grazzi, Giulio Bottazzi, Angelo Secchi, Federico Tamagni

Risultato della ricerca: Contributo in rivistaArticolo in rivistapeer review

36 Citazioni (Scopus)

Abstract

This paper investigates the relevance of financial and economic variables as determinants of firm default. Our analysis covers a large sample of medium-sized limited liability firms. Since default might lead, through bankruptcy or radical restructuring, to firm’s exit, our work also relates to previous contributions on industrial demography. Using non parametric tests we assess to what extent defaulting firms differ from the non-defaulting group. Bootstrap probit regressions confirm that economic variables, in addition to standard financial indicators, play both a long and short term effect. Our findings are robust with respect to the inclusion of Distance to Default and risk ratings among the regressors.
Lingua originaleEnglish
pagine (da-a)373-406
Numero di pagine34
RivistaJournal of Evolutionary Economics
Volume21
DOI
Stato di pubblicazionePubblicato - 2011

Keywords

  • CREDIT CONSTRAINTS
  • DEFAULT
  • MARKET SELECTION
  • PROBIT MODELS
  • distance to default
  • probability of default

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