A simple test of adverse events and strategic timing theories of consumer bankruptcy
By: Li Gan, Tarun Sabarwal.
Contributors: Sabarwal, Tarun.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 11763; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 11763.
Publisher: National Bureau of Economic Research
Published: 2005
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Bankruptcy -- Mathematical models.
Description: "A test of adverse events and strategic timing theories can be conducted by determining whether some relevant financial decision variables, such as financial benefit from filing for bankruptcy, or debt discharged in bankruptcy are endogenous with the bankruptcy decision or not.  For the strategic timing theory such decisions are endogenous, while for the adverse events theory they are not.  Hausman tests for endogeneity show that financial benefit, unsecured debt, and non-exempt assets are exogenous with the bankruptcy decision, consistent with the adverse events theory"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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Mode of access: World Wide Web.