TY  - BOOK
AU  - Chung,Jae-Yong
AU  - Ratnovski,Lev
ED  - International Monetary Fund,
ED  - International Monetary Fund.
TI  - Benefits and costs of coporate debt restructuring: an estimation for Korea 
T2  - IMF working paper
SN  - 9781475545418
SN  - 1018-5941
AV  - HG3881.5.I58 W67 No. 16/204eb
U1  - 658.1526 23
PY  - 2016///]
CY  - [Washington, D.C.]
PB  - International Monetary Fund
KW  - Corporate debt
KW  - Korea (South)
KW  - Econometric models
KW  - Debt relief
KW  - fast
KW  - Electronic books
N1  - "October 2016."; At head of title: International Monetary Fund, Asia and Pacific Department; Includes bibliographical references (pages 20-21)
N2  - 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
UR  - https://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=1428967
ER  -