Dilatoriness of the banking enterprise debt in Spain, 1992-2003
AbstractThis paper analyses the determinants of the default ratio associated to banking debt in Spanish non financial firms over the period 1992-2003. It studies the factors influencing firms' entering and exit processes in and out from the default status. Additionally, it explores the factors explaining the relative amount of non performing banking debt in defaulted firms. The database combines firm-level data for non-financial companies drawn from two sources: SABI-INFORMA and Credit Register of Banco de Espana. The methodological approach is an application of Heckman's selection model. Results indicate that the decreasing trend in the evolution of the aggregate default ratio over the studied period is mainly attributable to the moderation in the level of the default ratios in those firms in which the default status is persistent over time. The contribution to the evolution of the aggregate default ratio of firms' turnover in a out from the default status has been fairly stable over time.
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Bibliographic InfoPaper provided by Banco de Espa�a in its series Banco de Espa�a Working Papers with number 0622.
Length: 54 pages
Date of creation: Sep 2006
Date of revision:
default of bank debt; non financial firms; heckman’s selection model; financial stability; financial distress;
Find related papers by JEL classification:
- C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
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