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Do Phoenix Miracles Exist? Firm-Level Evidence from Financial Crises

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dc.contributor.authorAyyagari, Meghana
dc.contributor.authorDemirgüç-Kunt, Asli
dc.contributor.authorMaksimovic, Vojislav
dc.date.accessioned2012-03-19T18:04:41Z
dc.date.available2012-03-19T18:04:41Z
dc.date.issued2011-09-01
dc.description.abstractThis paper provides empirical evidence on firm recoveries from financial system collapses in developing countries (systemic sudden stops episodes), and compares them with the experience in the United States in the 2008 financial crisis. Prior research found that economies recover from systemic sudden stop episodes before the financial sector. These recoveries are called Phoenix miracles, and the research questioned the role of the financial system in recovery. Although an average of the macro data across a sample of systemic sudden stop episodes over the 1990s appears consistent with the notion of Phoenix recoveries, closer inspection reveals heterogeneity of responses across the countries, with only a few countries fitting the pattern. Micro data show that across countries, only a small fraction (less than 31 percent) of firms follow a pattern of recovery in sales without a recovery in external credit, and even these firms have access to external sources of cash. The experience of firms in the United States during the 2008 financial crisis also suggests no evidence of credit-less recoveries. An examination of the dynamics of firms' financing, investment and payout policies during recovery periods shows that far from being constrained, the firms in the sample are able to access long-term financing, issue equity, and significantly expand their cash holdings.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110919161453
dc.identifier.doi10.1596/1813-9450-5799
dc.identifier.urihttps://hdl.handle.net/10986/3563
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research Working Paper ; No. 5799
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectABSENCE OF CREDIT
dc.subjectACCESS TO CREDIT
dc.subjectACCOUNTING
dc.subjectADMINISTRATIVE EXPENSES
dc.subjectAMORTIZATION
dc.subjectASSET SALES
dc.subjectASSET STRUCTURE
dc.subjectBALANCE SHEET
dc.subjectBALANCE-SHEET
dc.subjectBANK CREDIT
dc.subjectBANK LENDING
dc.subjectBANKING CRISES
dc.subjectBANKRUPT
dc.subjectBENCHMARK
dc.subjectBOND INDEX
dc.subjectBORROWINGS
dc.subjectBROKERS
dc.subjectCAPITAL FLOW
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL MARKETS
dc.subjectCAPITAL STOCK
dc.subjectCAPITAL STRUCTURE
dc.subjectCASH BALANCE
dc.subjectCASH BALANCES
dc.subjectCASH DIVIDENDS
dc.subjectCASH FLOW
dc.subjectCASH FLOWS
dc.subjectCASH HOLDINGS
dc.subjectCASH OUTFLOWS
dc.subjectCHECKS
dc.subjectCOMMERCIAL BANKS
dc.subjectCOMMERCIAL INCOME
dc.subjectCOMMON STOCK
dc.subjectCONSUMER LOANS
dc.subjectCORPORATE DEBT
dc.subjectCORPORATE INVESTMENT
dc.subjectCORPORATE PROFITS
dc.subjectCREDIT CRUNCH
dc.subjectCREDIT CRUNCHES
dc.subjectCREDIT LEVELS
dc.subjectCREDIT LINES
dc.subjectCREDIT MARKETS
dc.subjectCRISIS COUNTRY
dc.subjectCURRENCY
dc.subjectCURRENCY CRISES
dc.subjectDEBT
dc.subjectDEBT FINANCING
dc.subjectDEBT ISSUANCE
dc.subjectDEBT MATURITY
dc.subjectDEBT POSITIONS
dc.subjectDECISION MAKING
dc.subjectDEPENDENT
dc.subjectDEPOSIT
dc.subjectDEPOSIT MONEY BANKS
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT POLICY
dc.subjectDIVIDEND
dc.subjectDIVIDEND PAYMENTS
dc.subjectDIVIDENDS
dc.subjectDOLLAR DEBT
dc.subjectEARNINGS
dc.subjectEARNINGS BEFORE INTEREST
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC OUTLOOK
dc.subjectECONOMIC POLICY
dc.subjectEMERGING ECONOMIES
dc.subjectEMERGING MARKET
dc.subjectEMERGING MARKET BOND
dc.subjectEMERGING MARKET COUNTRIES
dc.subjectEMERGING MARKET FIRMS
dc.subjectEMERGING MARKETS
dc.subjectEQUIPMENT
dc.subjectEQUITY ISSUANCE
dc.subjectEQUITY ISSUANCES
dc.subjectEQUITY ISSUES
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectEXTERNAL BORROWING
dc.subjectEXTERNAL CREDIT
dc.subjectEXTERNAL FINANCE
dc.subjectEXTERNAL FINANCING
dc.subjectFEDERAL RESERVE
dc.subjectFEDERAL RESERVE BANK
dc.subjectFINANCIAL CONSTRAINTS
dc.subjectFINANCIAL CRISES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL DISTRESS
dc.subjectFINANCIAL MARKET
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL RESOURCES
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL SERVICES
dc.subjectFINANCIAL SHOCK
dc.subjectFINANCIAL STATEMENTS
dc.subjectFINANCIAL STUDIES
dc.subjectFINANCIAL SYSTEM
dc.subjectFINANCING COSTS
dc.subjectFIRM SALES
dc.subjectFIXED ASSETS
dc.subjectFORECASTS
dc.subjectFOREIGN EXCHANGE
dc.subjectGDP
dc.subjectGDP DEFLATOR
dc.subjectGLOBAL CAPITAL
dc.subjectGLOBAL CAPITAL MARKET
dc.subjectGROWTH OPPORTUNITIES
dc.subjectINCOME STATEMENT
dc.subjectINCOME STATEMENTS
dc.subjectINDIVIDUAL FIRM
dc.subjectINDIVIDUAL FIRMS
dc.subjectINDUSTRIAL LOANS
dc.subjectINSURANCE
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL FINANCIAL STATISTICS
dc.subjectINVENTORIES
dc.subjectINVENTORY
dc.subjectINVESTING
dc.subjectINVESTMENT CASH FLOW SENSITIVITIES
dc.subjectINVESTMENT DECISIONS
dc.subjectINVESTMENT OPPORTUNITIES
dc.subjectINVESTMENT PATTERNS
dc.subjectINVESTMENT-CASH FLOW SENSITIVITIES
dc.subjectISSUANCE
dc.subjectLEVERAGE
dc.subjectLIMITED ACCESS
dc.subjectLIQUIDITY
dc.subjectLIQUIDITY CRUNCH
dc.subjectLIQUIDITY MANAGEMENT
dc.subjectLOCAL CURRENCY
dc.subjectLONG TERM FINANCING
dc.subjectLONG-TERM BORROWING
dc.subjectLONG-TERM BORROWINGS
dc.subjectLONG-TERM DEBT
dc.subjectLONG-TERM DEBT MARKET
dc.subjectLONG-TERM DEBT MARKETS
dc.subjectLONG-TERM INVESTMENTS
dc.subjectMARKET INTEGRATION
dc.subjectMARKET RISK
dc.subjectMATURITY MISMATCH
dc.subjectMERGER
dc.subjectMERGERS
dc.subjectMICRO DATA
dc.subjectNATIONAL INCOME
dc.subjectNET CAPITAL
dc.subjectOUTPUT
dc.subjectOVERDRAFTS
dc.subjectPOSITIVE COEFFICIENT
dc.subjectPRIVATE CREDIT
dc.subjectPRIVATE SECTOR BANK
dc.subjectPRIVATE SECTOR CREDIT
dc.subjectPRIVATE SECTOR DEVELOPMENT
dc.subjectPROFITABILITY
dc.subjectPUBLIC POLICY
dc.subjectREAL ECONOMIC ACTIVITY
dc.subjectREAL ESTATE
dc.subjectREAL ESTATE LOANS
dc.subjectREAL GDP
dc.subjectRECESSION
dc.subjectRECESSIONS
dc.subjectRECOVERY PERIOD
dc.subjectRECOVERY PERIODS
dc.subjectRESOLUTION MECHANISMS
dc.subjectRETURN
dc.subjectRETURNS
dc.subjectSALE OF INVESTMENTS
dc.subjectSALE OF PROPERTY
dc.subjectSAVINGS
dc.subjectSECURITIES
dc.subjectSELF-FINANCING
dc.subjectSHAREHOLDER
dc.subjectSHORT TERM BORROWING
dc.subjectSHORT TERM BORROWINGS
dc.subjectSHORT TERM CREDIT
dc.subjectSHORT-TERM BORROWING
dc.subjectSHORT-TERM DEBT
dc.subjectSHORT-TERM DEBTS
dc.subjectSHORT-TERM FINANCING
dc.subjectSOURCES OF CREDIT
dc.subjectSTOCK ISSUANCE
dc.subjectSTOCK ISSUANCES
dc.subjectSTOCK OPTIONS
dc.subjectSYSTEMIC BANKING CRISES
dc.subjectSYSTEMIC CRISES
dc.subjectTERM CREDIT
dc.subjectTRANSITION ECONOMIES
dc.subjectTROUGH
dc.subjectVALUE ADDED
dc.subjectWAGES
dc.subjectWARRANTS
dc.subjectWORKING CAPITAL
dc.subjectWORLD DEVELOPMENT INDICATORS
dc.titleDo Phoenix Miracles Exist? Firm-Level Evidence from Financial Crisesen
dspace.entity.typePublication
okr.crossref.titleDo Phoenix Miracles Exist? Firm-Level Evidence from Financial Crises
okr.date.disclosure2011-09-01
okr.date.doiregistration2025-04-10T11:13:12.113270Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110919161453
okr.guid561841468327554623
okr.identifier.doi10.1596/1813-9450-5799
okr.identifier.externaldocumentum000158349_20110919161453
okr.identifier.internaldocumentum15085106
okr.identifier.reportWPS5799
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/09/19/000158349_20110919161453/Rendered/PDF/WPS5799.pdfen
okr.sectorFinance :: General finance sector
okr.unitDevelopment Research Group (DECRG)
okr.unitDECRG: Finance & Priv Sec Devt (DECFP)
okr.volume1 of 1
relation.isAuthorOfPublication234a20c0-893c-561a-8c90-6f5be5be5b9b
relation.isAuthorOfPublication.latestForDiscovery234a20c0-893c-561a-8c90-6f5be5be5b9b
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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