Default resolution and access to fresh credit in an emerging market

Autor:	Mark N. Harris, Inayat Hussain, Robert B. Durand
Rok vydání:	2016
Předmět:	Economics and Econometrics 050208 finance Credit default swap 05 social sciences Financial system Credit default swap index iTraxx 0502 economics and business Credit derivative Default Business 050207 economics Non-performing loan Synthetic CDO Finance Credit risk
Zdroj:	Pacific-Basin Finance Journal. 39:256-274
ISSN:	0927-538X
DOI:	10.1016/j.pacfin.2016.06.009
Popis:	We examine loan defaults by firms and identify the factors that influence both the default resolution process and firms' access to fresh credit after firms exit default. Using a dataset of all commercial loans made in Pakistan from 2006 to 2013, we find an important role for collateral. Collateral expedites both the default resolution process and access to fresh credit after exiting default. Higher interest rates increase the default duration. Relationships with multiple lenders as well as those with multiple branches of one lender are associated with obtaining fresh credit at the post default stage.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::259b172ebd87c94c273af62f5a06bb95 https://doi.org/10.1016/j.pacfin.2016.06.009 Zobrazit plný text záznamu Full Text from ScienceDirect