Using accounting‐based and loan‐related information to estimate the cure probability of a defaulted company

Faculty/Professorship: Controlling 
Author(s): Lohmann, Christian; Ohliger, Thorsten
Publisher Information: Bamberg : Otto-Friedrich-Universität
Year of publication: 2021
Pages: 620-640
Source/Other editions: European financial management : the journal of the European Financial, 27 (2020), 4, S. 620-640 - ISSN: 1354-7798, 1468-036X
is version of: 10.1111/eufm.12279
Year of first publication: 2020
Language(s): English
Licence: Creative Commons - CC BY - Attribution 4.0 International 
DOI: 10.1111/eufm.12279
URN: urn:nbn:de:bvb:473-irb-498220
The cure of a defaulted company has important implications for the estimation of the loss given default. In this study, we estimate the probability of a defaulted company being cured using data on a large international sample of defaulted companies. More specifically, we examine whether historic accounting information on a defaulted company and loan‐related information are associated with that company's probability of being cured. The main finding of our analysis is that both accounting‐based and loan‐related independent variables increase the validity of cure prediction models.
GND Keywords: Rechnungslegung; Insolvenz; Kreditfinanzierung; Kreditsicherheit; Unternehmenssanierung
Keywords: accounting information ; company cure ; collateralization ; cure probability ; defaulted company ; Global Credit Data
DDC Classification: 650 Management & public relations  
RVK Classification: QP 760   
Peer Reviewed: Ja
International Distribution: Ja
Open Access Journal: Ja
Type: Article
Release Date: 28. April 2021

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