Title Corporate leverage, bankruptcy, and output adjustment in post-crisis East Asia / prepared by Se-Jik Kim and Mark R. Stone

Published [Washington, D.C.] : International Monetary Fund, Research Department and Asia and Pacific Department, ©1999

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Description 1 online resource (29 pages) : illustrations Series IMF working paper, 2227-8885 ; WP/99/143 IMF working paper ; WP/99/143. Summary Annotation Different levels of corporate leverage are used in this paper to help explain the wide range of post-crisis output adjustment across East Asia. In the model developed here, highly leveraged firms facing a cutoff of capital inflows are threatened by bankruptcy. These firms respond by eliminating investment and selling their capital goods-at a discount-to try to stay afloat. Lower investment and wasteful capital sales shrink the aggregate capital stock, trigger deflationary pressures, and contract overall output. the available data are broadly consistent with the assumptions and predictions of the model Bibliography Includes bibliographical references (pages 27-29) Notes Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL English digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL Print version record Subject Financial crises -- East Asia -- Econometric models Bankruptcy -- East Asia -- Econometric models Business failures -- East Asia -- Econometric models Industrial equipment -- East Asia -- Econometric models Debt financing (Corporations) -- East Asia -- Econometric models Capital -- East Asia -- Econometric models Deflation (Finance) -- East Asia -- Econometric models Bankruptcy -- Econometric models Capital -- Econometric models Deflation (Finance) -- Econometric models Financial crises -- Econometric models Industrial equipment -- Econometric models East Asia Form Electronic book Author Stone, Mark R. (Mark Richard) International Monetary Fund. Research Department. International Monetary Fund. Asia and Pacific Department. ISBN 145190150X 9781451901504 1282105078 9781282105072 1462348874 9781462348879 1452788553 9781452788555 9786613799548 6613799548

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