Determinants of Wilful default in emerging economies: Evidence from India
By: Krishnakumar, Dipali and Sethi, Madhvi
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Material type: 
BookPublisher: Economic & Political Weekly Description: 60(6), Feb 8, 2025: p.43-49.
In:
Economic & Political WeeklySummary: Are wilful defaulters different from non-defaulter firms in terms of financial and governance characteristics? Do these characteristics impact the probability of wilful default? The role of related party transactions for wilful defaulters is examined. Logistic regression model results indicate that wilfully defaulting firms are likely to be financially constrained as they have lower cash flows from operations, lower interest coverage, and higher leverage compared to non-defaulter firms from the same industry. However, these firms are more likely to have manipulated their earnings and have a higher proportion of related party expenses. Governance plays an important role as wilful defaulting firms have lower shareholding by promoters and smaller boards.- Reproduced
https://www.epw.in/journal/special-articles/determinants-wilful-default-emerging-economies.html
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
Articles
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Indian Institute of Public Administration | 60(6), Feb 8, 2025: p.43-49 | Available | AR135478 |
Are wilful defaulters different from non-defaulter firms in terms of financial and governance characteristics? Do these characteristics impact the probability of wilful default? The role of related party transactions for wilful defaulters is examined. Logistic regression model results indicate that wilfully defaulting firms are likely to be financially constrained as they have lower cash flows from operations, lower interest coverage, and higher leverage compared to non-defaulter firms from the same industry. However, these firms are more likely to have manipulated their earnings and have a higher proportion of related party expenses. Governance plays an important role as wilful defaulting firms have lower shareholding by promoters and smaller boards.- Reproduced
https://www.epw.in/journal/special-articles/determinants-wilful-default-emerging-economies.html
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