Showing papers by "Victoria Ivashina published in 2014"
TL;DR: In this article, the authors quantify fluctuations in bank-loan supply in the time-series by studying firms' substitution between loans and bonds using firm-level data and find strong evidence of this substitution at times that are characterized by tight lending standards, depressed aggregate lending, poor bank performance and tight monetary policy.
293 citations
TL;DR: In this article, the authors examine twenty years of direct private equity investments by seven large institutions and find that these direct investments perform better than public market indices, especially buyout investments and those made in the 1990s.
Abstract: We examine twenty years of direct private equity investments by seven large institutions. These direct investments perform better than public market indices, especially buyout investments and those made in the 1990s. Outperformance by the direct investments, however, relative to the corresponding private equity fund benchmarks is limited and concentrated among buyout transactions. Co-investments underperform the corresponding funds with which they co-invest, due to an apparent adverse selection of transactions available to these investors, while solo transactions outperform fund benchmarks. Investors’ ability to resolve information problems appears to be an important driver of solo deal outcomes.
85 citations
TL;DR: The authors show that increasing reliance on the domestic banking sector for absorbing government bonds generates a crowding out of corporate lending, and that the effect is most pronounced in the period following the second Greek bailout in early 2010.
Abstract: By the end of 2013, the share of government debt held by the domestic banking sectors of Eurozone countries was more than twice its 2007 level. We show that this type of increasing reliance on the domestic banking sector for absorbing government bonds generates a crowding out of corporate lending. For a given domestic firm, new debt is less likely to be a loan — i.e., the loan supply contracts — when local banks have purchased more domestic sovereign debt and when that debt is risky (as measured by CDS spreads). These effects are most pronounced in the period following the second Greek bailout in early 2010.
35 citations
03 Sep 2014
TL;DR: This paper showed that suppliers that extend significant amounts of trade credit (measured with respect to their own capacity) hold private information about borrowers, and that the decision to sell receivables of a distressed company in bankruptcy is predictive of lower recovery rates.
Abstract: In bankruptcy, there is an active market within the claims against distressed firms. In this study, we use information on complete capital structure as well as claims transfers filed under the Rule 3001(e) of the Federal Rules of Bankruptcy Procedure for 132 U.S. Chapter 11 bankruptcy cases filed between 1998 and 2009. Contrary to the existing evidence on use of trade credit, we show that suppliers that extend significant amounts of trade credit (measured with respect to their own capacity) hold private information about borrowers. Specifically, we show that private and smaller firms are more likely to rely on trade credit as a source of financing. For these informed suppliers, the decision to sell receivables of a distressed company in bankruptcy is predictive of lower recovery rates; moreover, they sell ahead of less informed suppliers and other creditors. This result is especially pronounced for cases where the distressed firm relied most heavily on trade credit as their source of financing as compared to bank debt, or other forms of debt more broadly.
6 citations