Financial Distress premium in Pakistan’s Banking Stocks
نویسندگان
چکیده
منابع مشابه
Liquidity, Limit-to-Arbitrage, and Premium for Financial Distress
Stocks under nancial distress, measured by the Default Likelihood Indicator (DLI, Vassalou and Xing 2004) earn large returns during the rst month after portfolio formation, a phenomenon di¢ cult to explain using standard asset pricing models. We argue that when stocks experience nancial distress, they become less liquid at the same time. This lack of liquidity leads to temporary price conces...
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Did the unification of commercial and investment banking heighten risk in financial markets due to moral hazard of borrowers? In a simple intertemporal model with moral hazard and uninsured risk, we argue that if financial contracts are properly written, the integration in financial markets could give rise to greater risk sharing arrangement and could eliminate the equity risk premium attribute...
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Companies incur significant costs from the financial distress. Predicting financial distress will have an important role in preventing bankruptcy. The aim of the present study is to predict the financial distress costs using the Leland and Toft models, during 1996 and 1998. This study examines data relating to 49 companies listed in the Tehran stock exchange collected over ten years from 2005 t...
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ژورنال
عنوان ژورنال: NICE Research Journal
سال: 2020
ISSN: 2517-987X,2219-4282
DOI: 10.51239/nrjss.v13i4.236