Showing papers by "Sanket Mohapatra published in 2020"
TL;DR: The authors empirically test whether a stronger insolvency regime reduces firms' likelihood of defaulting on their debt, in particular, whether it reduces default risk during increased economic uncertainty and various external shocks.
15 citations
15 Oct 2020
TL;DR: In this article, the authors present an approach for insolvency and bankruptcy reform under the terms of the Creative Commons AttributionNon-Commercial 4.0 License (http://www.creativecommons.org/licenses/by-nc/4.115 Creative Commons Non Commercial CC BY-NC:
Abstract: 115 Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons AttributionNonCommercial 4.0 License (http://www.creativecommons.org/licenses/by-nc/4.0/) which permits non-Commercial use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access pages (https://us.sagepub.com/en-us/nam/open-access-at-sage). Insolvency and Bankruptcy Reforms: The Way Forward
6 citations
TL;DR: In this paper, the authors examined the relationship between foreign-currency debt and firms' financing constraints for India, the second largest emerging market economy after China, using detailed balance sheet data for 2,512 nonfinancial listed firms in India.
Abstract: First, the purpose of this study is to examine the relationship between foreign-currency debt and firms' financing constraints for India, the second-largest emerging market economy after China. Second, this study provides insights into how firms' financing constraints evolve prior to, during and after foreign currency borrowing. Third, it demonstrates the extent to which banks' ownership status and firms' characteristics influence the relationship between foreign currency borrowing and firms' financing constraints.,This study uses detailed balance sheet data for 2,512 nonfinancial listed firms in India for the 1996–2016 period to provide new evidence on the relationship between foreign currency borrowing and firms' financing constraints. This study uses a well-known measure of firms' financing constraints, the sensitivity of investment to internal cash flows (Fazzari et al., 1988, 2000; Hubbard, 1999; Love, 2003).,Financing constraints tend to be higher for firms with foreign currency debt exposure compared to other firms. Financing constraints are higher prior to new foreign currency borrowing (FCB), but decrease subsequently. Firms that have relationships with privately owned banks or foreign banks have higher financing constraints when undertaking new FCB than those with exclusive relationships with government-owned banks. Financing constraints for firms with FCB are higher during domestic credit booms than other periods. Nonmanufacturing firms and those with lower than median export revenues and higher than median tangible assets experience greater financing constraints compared to other firms when they undertake FCB.,The findings of this study suggest that although firms which borrow in foreign currencies are initially more financially constrained than other firms, the foreign currency borrowing reduces their financing constraints. The findings on how global and domestic macroeconomic conditions and firm-specific characteristics influence the relationship between financing constraints and foreign currency borrowing can provide directions for policy to better leverage the benefits of international financial integration.
3 citations
01 Sep 2020
2 citations
15 Oct 2020
TL;DR: In this article, the authors present a taxonomy of financial distress, bankruptcy, and corporate finance under the terms of the Creative Commons AttributionNon-Commercial 4.61 Creative Commons Non Commercial CC BY-NC.
Abstract: 61 Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons AttributionNonCommercial 4.0 License (http://www.creativecommons.org/licenses/by-nc/4.0/) which permits non-Commercial use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access pages (https://us.sagepub.com/en-us/nam/open-access-at-sage). Introduction to the Special Issue on ‘Financial Distress, Bankruptcy, and Corporate Finance’
1 citations
TL;DR: In this paper, the authors propose that enhancing the quality of financial reporting and sharing of credit information can alleviate informational gaps between contracting parties and improve loan contract terms, which can improve the loan contract length.
Abstract: Institutional factors that enhance the quality of financial reporting and sharing of credit information can alleviate informational gaps between contracting parties and improve loan contract terms....
01 Jan 2020
TL;DR: In this article, the authors analyzed the changing contours of the financial sector and the challenges faced by emerging markets and developing economies in recent years and suggested further promoting access to and usage of formal financial services to maximize society's overall welfare.
Abstract: Emerging Markets and Developing Economies (EMDEs) have been a significant driver of global growth in the twenty-first century. This paper analyses the changing contours of the financial sector and the challenges faced by EMDEs in recent years. In these countries, banks and domestic equity markets still continue to be vital as a source of financing for the corporate sector, bond markets. Amongst developing regions, South Asia had the largest equity market capitalization as a share of GDP in 2019, and the growth of corporate bond markets has been facilitated by improved macroeconomic stability, better regulation of bond markets, and protection of retail investors. Finally, the findings relating to financial inclusion (that includes digital and traditional) suggest further promoting access to and usage of formal financial services to maximize society’s overall welfare.