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Benefits and Costs of Corporate Debt Restructuring : : An Estimation for Korea / / Jae Chung, Lev Ratnovski



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Autore: Chung Jae Visualizza persona
Titolo: Benefits and Costs of Corporate Debt Restructuring : : An Estimation for Korea / / Jae Chung, Lev Ratnovski Visualizza cluster
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  Visualizza cluster
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
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Serie: IMF Working Papers; Working Paper ; ; No. 2016/204