Monica Marin: Can Risk Management Help Prevent Bankruptcy? Discussant: Christian Thomann.

Slides:

Advertisements

Similar presentations

LJUBLJANA, JUNE 19, 2012 IMPACT OF THE CRISIS ON THE CREDIT MARKET IN SLOVENIA.

Advertisements

Capital Structure Decisions Chapter 15 and 16

Copyright © 2007 Prentice-Hall. All rights reserved 1 Cost-Volume-Profit Analysis Chapter 7.

$100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300.

Chapter 12. Determining the Financing Mix n Operating Leverage n Financial Leverage n Capital Structure.

Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved 1 Chapter 16 Assessing Long-Term Debt, Equity, and Capital Structure McGraw-Hill/Irwin.

THE CAPITAL STRUCTURE DECISION The debt - equity trade off.

ACCOUNTING DATA, BANKRUPTCY, AND RISK. Introduction  Earnings is not the only accounting number available to investors in the capital market  CAPM 

Last Lecture.. Cost of Equity Cost of Preferred Stock Cost of Debt

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Leverage and Capital Structure Chapter 13.

Capital Structure Refers to the mix of debt and equity that a company uses to finance its business Capital Restructuring Capital restructuring involves.

1 Credit Risk Analysis. 2 What is a bond? A long-term debt instrument in which a borrower agrees to make payments of principal and interest, on specific.

1 Copyright 1996 by The McGraw-Hill Companies, Inc Capital Structure.

1 Today Capital structure M&M theorem Leverage, risk, and WACC Taxes and Financial distress, Reading Brealey and Myers, Chapter 17, 18.

Information Gathering in Government Bailout Decision: An Experiment Ayung Tseng December 8,

Chapter 4. We will want to answer questions about the firm’s n Liquidity n Efficient use of Assets n Leverage (financing) n Profitability.

Capital Structure (Ch. 12)

© K. Cuthbertson and D. Nitzsche Figures for Chapter 11 VALUING FIRMS : CAPITAL STRUCTURE AND THE COST OF CAPITAL (Investments : Spot and Derivatives Markets)

The Financing Mix 11/08/05.

Topic 2: Valuing firms and the market for equities The influence of a firm’s debt-to-equity ratio on its value and required rate of return (cost of capital)

Session 7: Capital Structure C Corporate Finance Topics.

Student Name Student ID

Web Extension 25B Multiple Discriminant Analysis.

Business Model: Capital Budgeting, Equity Valuation and Returns Attribution FMRC Conference Vanderbilt University By Thomas S. Y. Ho Thomas Ho Company.

How much should a firm borrow?

Chapter 24 Principles PrinciplesofCorporateFinance Ninth Edition Credit Risk and the Value of Corporate Debt Slides by Matthew Will Copyright © 2008 by.

Jwala Rambarran Prakash Ramlakhan

Balance Sheet Leverage in the Financial System. Balance Sheet | Goldman Sachs Total Assets = $859,914,000 Total.

$100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300.

Copyright: M. S. Humayun1 Financial Management Lecture No. 32 Financial Leverage & Introduction to Capital Structure Theory.

1 Topics in Chapter 15: Capital Structure Business versus financial risk Impact of financial leverage on returns Analyzing alternative capital structures.

1 Global Energy Management Institute Credit Related Issues January 22, 2004 Stuart M. Turnbull.

Copyright © 2009 Pearson Prentice Hall. All rights reserved. Chapter 11 Leverage and Capital Structure.

Discussion of Mansi-Qi-Wald: Debt Covenants, Bankruptcy Risk, and Issuance Costs Wuhan, July 2011 Moqi Xu INSEAD/LSE.

Copyright © 2003 Pearson Education, Inc. Slide 11-0 Ch 11 Learning Goals 1.Operating, financial, and total leverage (causes & measures). 2.Business risk,

ACCOUNTING- AND FINANCE-BASED MEASURES OF RISK. Introduction An important objective of the analysis of financial statements in general and that of ratios.

Development of Capital Structure Theory n PRE-MM THEORIES Net Income (NI) Theory Net Income (NI) Theory Net Operating Income (NOI) Theory Net Operating.

Chapter 24 Principles of Corporate Finance Eighth Edition Credit Risk Slides by Matthew Will Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights.

1 Topics in Chapter 16: Capital Structure Business risk & financial risk Impact of financial leverage on returns Analyzing alternative capital structures.

Can Risk Management Help Prevent Bankruptcy? Monica Marin Ph.D. Candidate, Finance.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Leverage and Capital Structure Chapter 13.

Financial Management FIN300 Leverage and Capital Structure.

Agenda Technology Adoption Behavior of stock valuations Value Drivers Trading Strategy Q & A.

1 Survey evidence on some of the factors that affect the decision to issue debt. The survey is based on the responses of 392 CFOs, conducted by John Graham.

Discussion of Reindle-Schandlbauer: Do bond covenants prevent asset substitution – using a novel structural estimation approach Oslo, October 2014 Moqi.

Assessing the Probability of Bankruptcy with the Merton Approach Relative to Accounting Variables –Evidence from Taiwan and China Mei-Ying Liu Soochow.

Dividends and Dividend Policy. Dividend Definitions (Cash) Net Income Regular Cash Dividend Extra Dividend Special Dividend Asset SalesLiquidating Dividend.

McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 11 APPLICATION OF REAL OPTION TECHNIQUES TO CAPITAL.

Chapter McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 17 Financial Leverage and Capital Structure Policy.

A dynamic optimal capital structure model with costly adjustment mechanisms H. Liao, Y. Tung, T. Chen Discussion by Fei Ding Hong Kong University of Science.

Ratio Analysis Jillian Croal DIT 1006 Spring 2003.

Strategy: Your Company logo. Executive Summary Include Brief Background Info.

CHAPTER 5 CREDIT RISK 1. Chapter Focus Distinguishing credit risk from market risk Credit policy and credit risk Credit risk assessment framework Inputs.

Capital Structure Theory Chapter Sixteen. Corporate Finance Ch16 1/p17 Prof. Oh, 2012 Choosing a Capital Structure  What is the primary goal of financial.

A case in Neural Network - A Nerual Network for Bankruptcy Prediction.

BUS 401 Week 3 Quiz Check this A+ tutorial guideline at NEW/BUS-401-Week-3-Quiz 1.) The appropriate cash flows.

Capital Structure and Leverage

Investment Management

Credit Risk and the Value of Corporate Debt

Credit Risk Analysis.

과제 3: 인공신경망.

Corporate Financial Measures of Risk

FIN 350 Innovative Education-- snaptutorial.com

Roberts and Sufi (2009) Here the concern is financial policies.

Credit risk analysis & debt capacity

A case in Neural Network - A Nerual Network for Bankruptcy Prediction

A case in Neural Network - A Nerual Network for Bankruptcy Prediction

Chapter 11 APPLICATION OF REAL OPTION TECHNIQUES TO

Chapter 4 Risk and Return-Part 1.

Chapter 4 Risk and Return-Part 1.

Presentation transcript:

Monica Marin: Can Risk Management Help Prevent Bankruptcy? Discussant: Christian Thomann

2 Main Findings Risk Management Lowers Risk of Bankruptcy Increases Distance to Default Decreases Asset Volatility Asset Volatility is Reduced if a Company starts to Manage Risks Other Findings Probability of Bankruptcy Decreases with Size Probability of Bankruptcy Increases with Leverage

Christian Thomann 3 Questions How did the New-Economy Bubble Affect the Companies in the Dataset? M-to-B Ratios? 20 % of Companies from the Communications Sector Most of the Bankruptcies occur 2000/01 How do your Models on the Asset Volatility of Bankrupt and Non-bankrupt Firms Compare to the Literature?