Abstract Since the Global Financial Crisis, interest in financial cycles has risen significantly. While much of modern macroeconomics conceives crises as results exogenous shocks, Minsky’s instability hypothesis posits that are endogenous to economic system. The main contribution this paper is use historical macroeconomic data for United States (1889–2014) econometrically test Minsky cycles: in...

Indicators of the financial condition of the multifamily housing stock can potentially inform several policy issues, such as the loss of affordable rental units, multifamily developers’ access to capital, and the emerging secondary mortgage market for multifamily properties. Several rules of thumb exist for assessing financial condition. This article uses the Residential Finance Survey to inves...

This paper examines how 12 “major depreciations” between 1997 and 2000 affected different measures of firm performance in a sample of over 13,500 companies from around the world. Results suggest that in the year after depreciations, firms have significantly higher growth in market capitalization, but significantly lower growth in net income (when measured in local currency). Firms with greater ...

This paper examines how 12 “major depreciations” between 1997 and 2000 affected different measures of firm performance in a sample of over 13,500 companies from around the world. Results suggest that in the year after depreciations, firms have significantly higher growth in market capitalization, but significantly lower growth in net income (when measured in local currency). Firms with a higher...

The paper analyzes proposed accounting for financial instruments, specifically the practice of a debtor reducing the carrying value of debt and recognizing a gain as the debtor's own credit quality deteriorates. A numerical example based on Boston Chicken in 1997 shows how several common ratios provide opposite signals under current versus proposed accounting. A discussion of the example raises...

In this paper I develop a model to investigate the connection between debt relief and current account sustainability. This model can be used as a key input in assessing whether a HIPC country’s real exchange rate is ‘overvalued,’ and will thus need to go through devaluation. The working of the model is illustrated for the case of Nicaragua, a country that in 2002 had one of the highest external...

This paper investigates the interaction among a firm’s knowledge capital, growth opportunities, earning dynamics, and optimal leverage level. Under the corporate taxation and personal taxation framework, by assuming knowledge capital positively affects the realization of a firm’s growth opportunities, I find a positive relation between a firm’s optimal debt level and its knowledge capital. Mean...

The purpose of this paper is to investigate empirically the existence of interindustry differences in the capital structure and product market competition of corporations listed in Tehran Stock Exchange. We study an balanced panel dataset of 603 firm-year observations in 8 industries from 2001 to 2009. The technique used for this is one way analysis of variance. Employing this parametric method...

This paper studies the connection between CEO experience and Vietnamese listed firms’ capital adjustment behavior. In context of Vietnam, we find that experienced CEOs slow down speed obtaining desired ratio debt, after analyzing a sample 694 public companies from 2010 to 2019. pattern can be seen for both under- over-the-target enterprises when leverage is measured by book market value. Our fi...