Benefits and Costs of Corporate Debt Restructuring : : An Estimation for Korea / / Jae Chung, Lev Ratnovski
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| Autore: |
Chung Jae
|
| Titolo: |
Benefits and Costs of Corporate Debt Restructuring : : An Estimation for Korea / / Jae Chung, Lev Ratnovski
|
| Pubblicazione: | Washington, D.C. : , : International Monetary Fund, , 2016 |
| Descrizione fisica: | 1 online resource (23 pages) : illustrations, tables |
| Disciplina: | 658.1526 |
| Soggetto topico: | Corporate debt - Korea (South) - Econometric models |
| Debt relief - Korea (South) - Econometric models | |
| Exports and Imports | |
| Financial Risk Management | |
| Labor | |
| Industries: Manufacturing | |
| Investment | |
| Capital | |
| Intangible Capital | |
| Capacity | |
| Business Fluctuations | |
| Cycles | |
| Bankruptcy | |
| Liquidation | |
| Debt | |
| Debt Management | |
| Sovereign Debt | |
| Employment | |
| Unemployment | |
| Wages | |
| Intergenerational Income Distribution | |
| Aggregate Human Capital | |
| Aggregate Labor Productivity | |
| Labor Force and Employment, Size, and Structure | |
| International Lending and Debt Problems | |
| Industry Studies: Manufacturing: General | |
| Finance | |
| Labour | |
| income economics | |
| International economics | |
| Manufacturing industries | |
| Debt restructuring | |
| Labor force | |
| Debt burden | |
| Manufacturing | |
| Asset and liability management | |
| External debt | |
| Economic sectors | |
| Debts, External | |
| Economic theory | |
| Labor market | |
| Soggetto geografico: | Korea, Republic of |
| Altri autori: |
RatnovskiLev
|
| Sommario/riassunto: | 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. |
| Titolo autorizzato: | Benefits and Costs of Corporate Debt Restructuring |
| ISBN: | 1-4755-4550-9 |
| 1-4755-4555-X | |
| Formato: | Materiale a stampa  |
| Livello bibliografico | Monografia |
| Lingua di pubblicazione: | Inglese |
| Record Nr.: | 9910154899503321 |
| Lo trovi qui: | Univ. Federico II |
| Opac: | Controlla la disponibilità qui |
Serie:
IMF Working Papers; Working Paper ; ; No. 2016/204