Search: insolvency
RBA Glossary definition for insolvency
insolvency – A situation where an entity has insufficient assets to cover the value of its liabilities, resulting in an inability to meet its financial obligations as they fall due.
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Behaviour of the Financial Ratios
1 Dec 1992
RDP
9216
While this assumption is true if all other things are constant, higher leverage does not necessarily imply a higher probability of insolvency or corporate failure.
https://www.rba.gov.au/publications/rdp/1992/9216/behaviour-of-the-financial-ratios.html
The Relationship between Financial Structure and the Cyclicality of Output and Earnings
1 Dec 1992
RDP
9216
The first is that emphasised by Bernanke and Gertler (1990). As a firm's leverage increases and the probability of insolvency rises, financial intermediaries become less willing to lend to the ... Second, if corporate insolvencies get translated into the
https://www.rba.gov.au/publications/rdp/1992/9216/relationship-between-financial-structure-and-the-cyclicality-of-output-and-earnings.html