Benefits and Costs of Corporate Debt Restructuring PDF (Adobe DRM) download by Jae Chung

Benefits and Costs of Corporate Debt Restructuring

INTERNATIONAL MONETARY FUND
Publication date: October 2016
ISBN: 9781475545555
Digital Book format: PDF (Adobe DRM)

Buy PDF

List price:
$9.00
Our price:
$6.99

You save: $2.01 (22%)
The paper offers a method to quantify benefits and costs of corporate debt restructuring, with an application to Korea. We suggest a "persistent ICR<1" criterion to capture firms that had ICR<1 for multiple consecutive years and thus will likely require restructuring. We assess the benefits of debt restructuring by estimating the effects of removing a firm's debt overhang on its investment and hiring decisions. We refine the assumptions on the cost of debt restructuring based on the literature, and focus not only on creditor losses, but also on the employment impact of corporate restructuring. Benchmark results for Korea suggest 5.5-7.5 percent of GDP creditor losses and a 0.4-0.9 percent of the labor force employment impact from the debt restructuring. These are compensated by a permanent 0.4-0.9 percentage points increase in future GDP growth thanks to higher corporate investment and 0.05-0.1 percent of labor force higher hiring in the subsequent years. The key qualitative result is that corporate debt restructurings "pay off" in the medium term: their economic cost is recouped over about 10 years.
Please sign in to review this product.
Format:
Devices:
Benefits and Costs of Corporate Debt Restructuring PDF (Adobe DRM) can be read on any device that can open PDF (Adobe DRM) files.

File Size:
1504 Kb
Language:
ENG
Copy From Text:
Disabled.
Printing:
Disabled.
Benefits and Costs of Corporate Debt Restructuring PDF (Adobe DRM) download by Jae Chung
INTERNATIONAL MONETARY FUND, October 2016
ISBN: 9781475545555
EAN:  9781475545555
PDF (Adobe DRM)
List Price: $9.00 eBook price: $6.99
Benefits and Costs of Corporate Debt Restructuring ePub (Adobe DRM) download by Jae Chung
INTERNATIONAL MONETARY FUND, October 2016
ISBN: 9781475545500
EAN:  9781475545500
ePub (Adobe DRM)
List Price: $9.00 eBook price: $6.99
Other books by Jae Chung
Between Ally and Partner: Korea-China Relations and the United States ePub (Adobe DRM) download by Chae-Ho Chong
Between Ally and Partner: Korea-China Relations and the United States
Chae-Ho Chong & Jae Chung & Jae Ho Chung
Columbia University Press, December 2006
ISBN: 9780231139076
Format: ePub
List Price: $31.99 Our price: $28.99