Does Industry-Wide Distress Affect Defaulted Firms? Evidence from Creditor Recoveries

By V. Acharya, Sreedhar T. Bharath, Anand Srinivasan. 2007

731 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/5b8946ff0147f5e5331bb67d93ee5d118187a00b

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Citations in the corpus

Macroeconomic Conditions and the Puzzles of Credit Spreads and Capital Structure (2010, neutral): “Almeida and Philippon (2007) also study the connections between credit spreads and capital structure.”
The expected cost of default (2016, background): “Examples of work in this literature include Andrade and Kaplan (1998), Pulvino (1998), Franks and Torous (1989), Opler and Titman (1994), Gilson (1997), Ofek (1993), Asquith, Gertner, and Scharfstein (1994), Acharya, Bharath, and Srinivasan (2007), and Davydenko, Strebulaev, and Zhao (2010).”
Cash-in-the-market pricing and optimal resolution of bank failures (2007, positive): “…strong empirical support for this idea in the corporate nance literature, as shown, for example, by Pulvino (1998) for the airline industry, and by Acharya, Bharath, and Srinivasan (2003) for the entire universe of defaulted rms in the US over the period 1981 to 1999 (see also Berger, Ofek and…”
Deposits and Bank Capital Structure (2015, neutral): “(2000), Van den Heuvel (2008), Admati et al. (2010), Acharya et al.”
Strategic Ownership Structure and the Cost of Debt (2012, methodology): “19Recent studies that use the Altman Z-score as a measure of default risk include Bharath et al. (2007), Santos and Winton (2008), and Chava et al. (2009). We use the specication in the Altman (1968) model but also check the extension to emerging markets (Altman, 2000) for robustness.”
A Market-Based Study of the Cost of Default (2012, background): “observing debt recovery rates in default (Acharya et al. (2007)). Andrade and Kaplan (1998) regress their distress cost estimates on industry equity returns and find the correlation between the two to be negative as expected, but not statistically significant.”
Bank Risk Taking and Liquidity Creation Following Regulatory Interventions and Capital Support (2011, positive): “…in inducing banks to reduce their risk taking, and what the consequences are for bank liquidity creation is critical for academics, regulatory authorities, and policymakers (e.g., Webb (2000); Acharya, Bharath, and Srinivasan (2007); Bank of England (2008); Acharya, Shin, and Yorulmazer (2009)).”
Friends with Money (2012, background): “Because recoveries depend on industry and firm characteristics (for evidence, see Altman and Kishore, 1996; Acharya, Bharath, and Srinivasan, 2007), we include in Table 3 a number of firm- and industry-specific control variables likely to affect asset recoveries in liquidation.”