In this paper, we provide a new perspective for understanding cross-sectional properties of equity returns. We explicitly introduce financial leverage in a simple equity valuation model and consider the likelihood of a firm defaulting on its debt obligations as well as potential deviations from the absolute priority rule (APR) upon the resolution of financial distress. We show that financial le...

BACKGROUND Various studies have reported socioeconomic inequalities in mental health among urban residents. This study aimed at investigating whether neighborhood social cohesion influences the associations between socio-economic factors and psychological distress. METHODS Cross-sectional questionnaire study on a random sample of 18,173 residents aged 16 years and older from 211 neighborhoods...

I present a model in which heterogeneity in financial distress endogenously generates inefficiencies in network formation, creating excessive systemic risk. Financial firms face costly liquidation and strategically trade assets, thereby forming links. A link with a distressed firm can be socially costly as it increases system-wide liquidation risk. When the cross-sectional dispersion of distres...

This study compares the predictive ability of: (1) ratings, rating changes and total assets; (2) financial ratios; and (3) financial ratios combined with ratings and rating changes on a sample of forty-eight insolvent life insurers over the period 1990 to 1992. Based on the expected cost of misclassification, ratings, rating changes and total assets have comparable predictive ability to financi...

BACKGROUND As safety net providers, public hospitals operate in more challenging environments than private hospitals. Such environments put public hospitals at greater risk of financial distress, which may result in privatization and deterioration of the safety net. PURPOSE The purpose of this study was to investigate whether financial distress is associated with privatization among public ho...

Although cancer patients may incur a wide range of cancer-related out-of-pocket costs and experience reduced income, the consequences of this financial burden are poorly understood. We investigated: financial adjustments needed to cope with the cancer-related financial burden; financial distress (defined as a reaction to the state of personal finances); and factors that increase risk of financi...

Following the financial crisis of 2007-2008, a deep analogy between the origins of instability in financial systems and complex ecosystems has been pointed out: in both cases, topological features of network structures influence how easily distress can spread within the system. However, in financial network models, the details of how financial institutions interact typically play a decisive rol...

BACKGROUND There is a lack of research on the financial impacts that head and neck cancer has on caregivers. OBJECTIVE To explore the overall financial impact of head and neck cancer on caregivers; to describe the factors that mitigate this impact. METHODS Interviews with 31 caregivers (mean time caring: 5.7 years). RESULTS Head and neck cancer had a considerable financial impact on careg...