Search: bankruptcy
RBA Glossary definition for bankruptcy
bankruptcy – A legal status, which can be initiated by a creditor or person concerned, whereby the bankrupt's property is vested in a trustee and, with the exception of certain personal and professional property, is available for distribution to creditors.
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Capital Structure: Theory and Evidence
1 Dec 1993
RDP
9313
These bankruptcy/financial distress costs carry a number of implications for capital structure choices. ... capacity. Also, a heavy reliance upon debt results in high risks of bankruptcy.
https://www.rba.gov.au/publications/rdp/1993/9313/capital-structure-theory-evidence.html
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Why Do Companies Fail?
24 Nov 2016
RDP
2016-09
Research Discussion Paper – RDP 2016-09 Why Do Companies Fail? Rose Kenney, Gianni La Cava and David Rodgers. November 2016. 1. MB. balance sheet, debt, financial markets, financial stability. We explore the determinants of corporate failure in
https://www.rba.gov.au/publications/rdp/2016/2016-09.html
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The 1890s Depression
31 Dec 2001
RDP
2001-07
The aim of the legislation was to give financial institutions more time to resolve their difficulties by delaying bankruptcy proceedings and deferring depositors' claims. ... Also in April, the bankruptcy of the general manager of the Colonial Bank
https://www.rba.gov.au/publications/rdp/2001/2001-07/1890s-depression.html
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Credit Losses at Australian Banks: 1980–2013
11 May 2015
RDP
2015-06
Research Discussion Paper – RDP 2015-06 Credit Losses at Australian Banks: 1980–2013 Abstract. David Rodgers. May 2015. 1.46. MB. banking, debt, financial markets, regulation. Credit risk – the risk that borrowers will not repay their loans
https://www.rba.gov.au/publications/rdp/2015/2015-06.html
Conclusions
1 Nov 1993
RDP
9311
but to reduce the probability of subsequent bankruptcy and loss of their job. ... While we present no direct evidence in support of the view that this recapitalisation (or reliquefication) is an attempt to reduce the cost of external funds and reduce
https://www.rba.gov.au/publications/rdp/1993/9311/conclusions.html
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The Model
22 Nov 2016
RDP
2016-07
In addition, we do not assume explicit bankruptcy costs; nonetheless, as we will show, default is still welfare reducing because it reduces the effectiveness of the OTC derivatives hedge.
https://www.rba.gov.au/publications/rdp/2016/2016-07/model.html
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The Determinants of Corporate Leverage: A Panel Data Analysis
30 Nov 2009
RDP
PDF
104KB
2.1.2 Bankruptcy and Financial Distress Costs. In the Modigliani-Miller world there are no bankruptcy costs. ... Altman (1984) finds that indirect bankruptcy costs average17.5 per cent of firm value one year prior to bankruptcy.
https://www.rba.gov.au/publications/rdp/1993/pdf/rdp9313.pdf
References
25 Oct 2022
RDP
2022-05
Berk JB, R Stanton and J Zechner (2010), ‘Human Capital, Bankruptcy, and Capital Structure’, The Journal of Finance, 65(3), pp 891–926.
https://www.rba.gov.au/publications/rdp/2022/2022-05/references.html
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The Real Effects of Debt Covenants: Evidence from Australia
24 Oct 2022
RDP
PDF
1647KB
violations of their terms occur more frequently than defaults or bankruptcies (Dichev and.
https://www.rba.gov.au/publications/rdp/2022/pdf/rdp2022-05.pdf
Agency Costs, Balance Sheets and the Business Cycle
30 Nov 2009
RDP
PDF
114KB
The firm, through its manager, isassumed to maximise expected profits less expected bankruptcy costs. ... incentive problems and the determinants of capital structure. 11risky. Also, expected bankruptcy costs are a decreasing function of equity.
https://www.rba.gov.au/publications/rdp/1993/pdf/rdp9311.pdf