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The traditional legal account of a corporate debtor's journey into and through bankruptcy reorganization naturally focuses on legal rights and entitlements, such as obligations arising under the debtor's existing agreements and rights articulated in the U.S. Bankruptcy Code. But the traditional legal account does little to probe why these prior agreements and transactions were entered into in the first place, and how they interact with the bankruptcy system to generate predictable outcomes. Rather, the traditional legal account applies a presumption that the debtor's financial characteristics, qualities, and features (what this Article calls "restructuring attributes") are not premeditated, at least insofar as a future bankruptcy filing is concerned. In contrast, this Article advances a theory of "tactical restructurings," which acknowledges that corporate debtors engage in deliberate prebankruptcy planning to achieve the ideal restructuring attributes and thus gain significant advantages in a future bankruptcy. By illuminating these understudied aspects of commercial restructurings, this Article contributes to a broader understanding of Chapter 11 bankruptcy as a dynamic rather than static process. Simply by manipulating key variables and inputs that are almost entirely within their control, debtors and their preferred stakeholders control the behavior of the Chapter 11 system and effectively lock in restructuring outcomes. [ABSTRACT FROM AUTHOR]

The development of technology has led to the widespread use of digital technology in tax enforcement. Using the Chinese digital tax enforcement reform as a quasi-natural experiment, this study shows that digital tax enforcement reduces the risk of debt default by improving accounting information quality and reducing agency costs. Further analysis shows that this impact is more significant in enterprises with poorer external information environments, lower internal control quality, lower customer concentration, and lower digitalization levels. This study enriches the research on the economic consequences of digital tax enforcement. This has practical implications for the government when using information technology to strengthen tax administration. [ABSTRACT FROM AUTHOR]

• Resident leverage exacerbates the debt risk of enterprises. • Resident leverage plays a role in debt maturity, solvency, and financialization. • Heterogeneous firms face different debt risks due to resident leverage. Using panel data from 2008 to 2019, this study analyzes the risk spillover effect of resident leverage on the corporate sector. Thus, the results indicate that increasing resident leverage does not create a more favorable macroeconomic environment for an enterprise to deleverage. Instead, it worsens the debt risk of the enterprise through mechanisms such as weakening corporate solvency, changing the corporate debt maturity structure, and enhancing the financial trend. [ABSTRACT FROM AUTHOR]

The study examines the impact of cash flow volatility on the debt structure of listed enterprises in Vietnam in period from 2009 to 2020. We use general least square method and percentile regression to examine this impact. Research results show that there exists an inverse relationship between cash flow volatility and corporate debt structure (financial leverage, short-term debt and long-term debt) of Vietnamese enterprises during the research period. In particular, unlike previous studies on cash flow volatility, this study further examines impact of the COVID pandemic on the relationship between cash flow volatility and debt structure. The test results show that cash flow volatility in the context of the COVID-19 pandemic has an positive impact on debt structure. At the same time, the study also finds that the cash flow volatility will decrease as the percentile of the debt structure increases. [ABSTRACT FROM AUTHOR]

Copyright of Asian Economies is the property of Institute of Developing Economies, JETRO and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This research study's main objective is to find theimpact of CEO education, bank size and macroeconomic variables onthe profitability (ROA) of Pakistani and Chinese listed banks. The bank is the major source of debt financing for business and non-business enterprises. Therefore, the stability of the banking industry is essential forthe financial system. Economic theory uncovered the control of the large and established bank in the nativemarketplace. It operated in a different atmosphere at a higher lending rate, but larger institutions give low rates on deposit as they are thought safer. Therefore, larger banks may benefit fromelevatedyield, and experimental results also conclusive. The research paper identified that the bank sizeaffects Pakistani and Chinese banks' profitability by using longitudinal data from 2009 to 2018. We employed the Ordinary Least Square (OLS) technique with E-View statistical software to analyze the association betweenbanks and profitability of Pakistani and Chinese listed banks. The empirical analysis definesthe case of Pakistani and Chinese listed banks; the bank's sizehas significantly butnegatively associated with the bank’sprofitability. Findings revealed that the economy of scale is necessary for Pakistani and Chinese listed bank’s profitability. The CEO education and macro-economic factors, GDP, inflation, and exchange rate have strong associations with Pakistani and Chinese listed banks' profitability and efficiency. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Development Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Academic and policy debates about the multi-trillion-dollar sovereign debt markets presume these markets are unique. The reason is that sovereigns differ from other borrowers. To the extent observers look elsewhere for guidance, they turn to corporate debt as a comparison. For example, official actors have repeatedly intervened in sovereign debt markets by prodding market participants to draft loan contracts that simulate aspects of corporate bankruptcy. We argue that the conventional view of sovereign debt—though useful to a point—has substantially and unjustifiably limited the academic and policy agenda. Rather than dwell on the unique characteristics of sovereign borrowers, we examine the practices and incentives of sovereign lenders. We show that, when viewed through this lender-focused prism, sovereign debt has as much or more in common with consumer than with corporate debt. Using consumer debt as a metaphor, we reveal gaps in the debate over how to reform sovereign debt markets. First, assessments of the sustainability of sovereign debt presently—and unjustifiably— overlook the negative consequences of excessive debt for the borrower’s citizens. Second, reform initiatives designed to promote “responsible lending” lack clearly articulated goals, an omission that will impair the development of a coherent reform agenda. While not a perfect metaphor, experience with consumer lending and financial regulation can help fill these gaps in our understanding of sovereign lending, producing a clearer vision of the roles and responsibilities of lenders in sovereign debt markets. [ABSTRACT FROM AUTHOR]

Furthermore, developing countries usually face debt crises at lower levels of debt than developing countries and China's nonfinancial debt to GDP ratio is more than twice the average level of other developing countries. China's investment as a share of GDP reached 48 percent in 2011, which is almost unprecedented for a large economy (for comparison, the US invests about 20 percent of GDP). Fall 2019, Volume XX 133 China's Fragile Economy A Story of Declining Productivity and Growing Debt Paul Armstrong-Taylor C hina's economy is fragile. [Extracted from the article]

Venture debt can be an important financing component for start-up financings. For start-ups and their shareholders, venture debt can be highly attractive due to tax advantages because of the speed of transactions and in order to avoid a dilution of shares. For lenders and their investors, venture debt offers high potential returns owing to high interest rates and the opportunity to participate in an increasing value of the start-up. This article, therefore, examines the basic principles and structure, the main features and contractual arrangements in connection with venture debt financings. [ABSTRACT FROM AUTHOR]

The article focuses on teaching experiences, learners studying business in secondary education find topics such as liquidity and debt servicing ability difficult concepts to master and a consequence, learners may end up at lower-order levels of thinking during these lessons.

The issues of internal organization and control analysis of account receivable and account payable are disclosed in the article. The study of the Russian industrial enterprises of receivables and payable status has been conducted. The checking program of the industrial enterprise's receivables has been developed. A grouping of receivables by the terms of formation is proposed for the analysis generalization results of the status and movement of accounts receivable, which will allow making administrative decisions in the field of settlement operations. A set of measures for strengthening the settlement and payment discipline and timely repayment of receivables was developed by the authors of this article. The authors also reflected the typical errors that make responsible accountants. They take into account the state and movement of accounts payable on its main components: in calculations with suppliers and contractors; according to wage calculations; on estimates of taxes and duties; on calculations for social insurance and maintenance and other types of settlements with different creditors. These mistakes and violations lead to the formation of unreliable information on this kind of obligation, which makes the data of accounting financial statements not suitable for working analysis and management decisions. Therefore, a program of internal audit of payable was developed by the main criteria of accounting financial statements to prevent these deficiencies. This article is not only scientific, but also practical. Therefore, the results of the research will be useful for both students, and accountants, managers, and managers of business entities. [ABSTRACT FROM AUTHOR]

The literature is abundant with studies about income inequality, consumption, public and household debt but scarce with studies about the corporations and their corporate power. This paper shows that corporate power influences increased consumption in order to secure its investments and provide sufficient demand. Secondly, rising consumerism influences growing household and public debt with multiple transmission mechanisms that work simultaneously and reinforce each other. Thirdly, growing household and public debt increase inequality, disabling the government to invest in education, health care, infrastructure or social transfers, and preventing the people from investing in their education or increasing their savings and, consequently, their wealth and financial independence. Finally, the inequality causes an increase in corporate power. People who are impoverished and thus unequal in comparison with the production owners and capitalists are also weaker in the bargaining process. They cannot improve their position, so the corporate power rises completing the cumulative and circular causation. [ABSTRACT FROM AUTHOR]

This study investigates the relationship between government borrowing and corporate financing decisions in 15 developed European countries for the period of 1989–2014. We find a robust negative relationship between government borrowing and corporate debt in developed European countries. However, we do not identify any significant relation between government debt and equity. The more important finding of our study is that long-term debt of large credit-worthy companies is more sensitive to government debt in comparison to that of small financially constrained companies. In addition to government borrowing, firm-specific factors and other macroeconomic control variables are statistically significant for corporate financing decisions. [ABSTRACT FROM AUTHOR]

In the market economy, understanding the financial reports is essential for anyone who wants to develop a business. To be efficient and competitive the manager of the company must analyze and interpret the financial information. Managers to have an efficient and profitable activity are obliged to ensure optimization of financing structure. Therefore, it is necessary to the knowledge of the various financing sources on the various markets that allow choosing the less expensive to ensure profitability and solvency of the company under the conditions of maintaining a low level of borrowing risks. [ABSTRACT FROM AUTHOR]

Today's economic reality contains a certain degree of uncertainty that often prevail economic rationality, affecting economic growth. Recent European and political agendas put a robust emphasis on the importance of social dimension of growth and try to shift the focus from economic evidence to social outcomes. The debt is currently a sensitive issue for most European countries and ordinary individuals, thus creating significant imbalances regarding perceived economic wealth and wellbeing at national and individual level. But debt is also associated with fast money and short term prosperity that can engine business and support living, thus economic growth. The paper makes a repositioning evaluation of the social domain into European political agendas, towards a smart, sustainable and inclusive growth for the Europeans. It encompasses an evaluation of the relevance of European growth on its economic development and sustainability. Rebalancing finance and economic priorities with a strong commitment to social priorities is the main reorientation target of the political agenda. There's a growing need for shifting the focus to qualitative facets of growth and European testimonials, for an ascending journey to smart, sustainable and inclusive growth, representing a continuing approach of EU's root ideals. Thus, the paper proposes an analysis of GDP evolution in relation to debt to GDP ratio indicator and social factors, as an alternative impact evaluation played by the social system and debt for a country's performance, representing an alternative way for assessing economic growth in relation to wellbeing. The results show a significant dependence of growth to debt to GDP ratio and social indicators such as population at risk to poverty rate, unemployment rate, life expectancy and expected years of schooling. [ABSTRACT FROM AUTHOR]

The financial analysis of company is the activity of diagnosing the company's state of performance the beginning to the end of the financial year, establishing the strengths and the weaknesses of the company's activity based on information provided by summary accounting documents (balance sheet, profit and loss and enclosures to the balance sheet). The purpose of the diagnosis analysis is to identify the situation of the company at a certain time to prevent its insolvency and to adopt the appropriate measures for ensuring increased liquidity and debt payment settlement. [ABSTRACT FROM AUTHOR]

It is almost a tradition for analytical papers to state that the high extent of corporate indebtedness (intercompany including) might hinder investments and growth. The thorough review of the existing research, however, does not reveal a reliable and definite proof that the gross non-government debt contracted might put economic performance in danger. Assuming new debt as a rule represents an incentive for economic growth but to a varying extent. Given a low level of indebtedness both developments go in parallel - the rates of indebtedness' growth (in the way of credits), on the one hand, and the rates of economic growth on the other. Provided a higher (much higher) speed of indebtedness, linked with the self-induced euphoria for accumulating relatively easy profits, economic development lags behind and the convergence of both curves is broken. The contribution of new lending for intensifying economic operations gradually declines until it reaches a point since which any further increase in lending starts hindering economic growth. The author's position is that non-government indebtedness in Bulgaria has not reached its break-even point, since which it turns into a brake to economic development. Insufficient indebtedness rather is what impedes economic growth. The question is why households and companies refrain from taking on new liabilities which would have stimulated investment and economic development. The investment and consumer restraint of economic players is much more the outcome of an assessment of the conjuncture in the future. The base period presumes a recovery of the economic development, the more so that there is a long way to go to reach the average European level. Despite that investments are slack. There is obviously a need for adopting a much more different style of social and economic management rather than the change in one or another parameter of economic management. It is obligatory to realize the decisive function of macroeconomic institutions. This process of awareness involves a much better quality of education and the growing up of all the population. [ABSTRACT FROM AUTHOR]

This research paper provides a statistical overview of which firms use non-bank financing in Ireland as well as a comparison vis-a-vis other Eurozone countries. We include a wide range of both non-bank debt finance (issued debt, trade credit, loans from friends/family/business partners, mezzanine debt and peer-to-peer lending/crowdfunding) as well as equity finance (venture capital, business angel and equity from friends and family and business partners). We attempt to answer the following research questions: (a) what firm characteristics are correlated with applications for, and usage of, specific types of bank finance? (b) What groups of firms or industries are more likely to apply for and use different types of non-bank finance? (c) Do Irish SMEs differ from other European enterprises and, if so, in what way? This overview should help provide evidence with which to understand the policy options available to diversify the financing options of Irish enterprises beyond their current reliance on bank lending. [ABSTRACT FROM AUTHOR]

An overhang relating to the pre-crisis property investment of Irish Small and Medium Enterprises (SMEs) has been identified as a potential drag on a recovery in employment, investment and output. This paper aims to provide information from survey and loan-level data which can help to quantify the extent of firms' property-related borrowing. Survey data show that a minimum of one-fifth of Irish SMEs have direct exposure to property debt. Loan-level data show that at least 10 per cent of firms with bank debt have exposure to property investment at the same bank, with this figure rising to 16 per cent when including Buy-To-Let mortgages for a subset of the data. Data on loan default suggest that property-related borrowing has had a detrimental impact on firms: SMEs with property-related borrowings have a loan default rate of 43 per cent, compared to 23 per cent for those without property exposure. [ABSTRACT FROM AUTHOR]

This paper draws on the SAFE survey on access to finance for a sample of 11,886 firms in the Euro Area which are matched with their nearest neighbour in a balance sheet dataset with 2.3 million firms. We investigate the role of firm characteristics with respect to firms' perceived financing constraints and actual financing constraints in the period 2009-2011. Low-profit firms are more likely to face actual financing constraints. Low working capital and high leverage ratios explain actual financing constraints to a lesser extent. Further, firms are more likely to perceive access to finance problematic when they have more debt with short-term maturity. Finally, firm age, but not size, is important in explaining both the perceived and the actual financial constraints. [ABSTRACT FROM AUTHOR]

The article suggests that secured creditor control is less pervasive than has been asserted. It mentions the need to research a cross section of Chapter 11 cases rather than the focus on large cases. It notes that various institutions of modern Chapter 11 bankruptcy have produced a certain balance among the debtor and various creditor constituencies.

The article discusses how the decision to lock a company into an all-encompassing secured loan should be regulated. It mentions that the state corporate law imposes a duty on the board to consider any decision that will foreclose a future board's choices. It concludes how the overuse of senior credit facilities might be addressed under Delaware corporate law.

Copyright of Romanian Case Law Review / Revista Română de Jurisprudenţă is the property of Universul Juridic Publishing House and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

It is almost a tradition for analytical papers to state that the high extent of corporate indebtedness (intercompany including) might hinder investments and growth. The thorough review of the existing research, however, does not reveal a reliable and definite proof that the gross non-government debt contracted might put economic performance in danger. Assuming new debt as a rule represents an incentive for economic growth but to a varying extent. Given a low level of indebtedness both developments go in parallel - the rates of indebtedness' growth (in the way of credits), on the one hand, and the rates of economic growth on the other. Provided a higher (much higher) speed of indebtedness, linked with the self-induced euphoria for accumulating relatively easy profits, economic development lags behind and the convergence of both curves is broken. The contribution of new lending for intensifying economic operations gradually declines until it reaches a point since which any further increase in lending starts hindering economic growth. The author's position is that non-government indebtedness in Bulgaria has not reached its break-even point, since which it turns into a brake to economic development. Insufficient indebtedness rather is what impedes economic growth. The question is why households and companies refrain from taking on new liabilities which would have stimulated investment and economic development. The investment and consumer restraint of economic players is much more the outcome of an assessment of the conjuncture in the future. The base period presumes a recovery of the economic development, the more so that there is a long way to go to reach the average European level. Despite that investments are slack. There is obviously a need for adopting a much more different style of social and economic management rather than the change in one or another parameter of economic management. It is obligatory to realize the decisive function of macroeconomic institutions. This process of awareness involves a much better quality of education and the growing up of all the population. [ABSTRACT FROM AUTHOR]