Minsky's Financial Fragility: An Empirical Analysis of Electricity Distribution Companies in Brazil (2007715)

Abstract

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The financial fragility hypothesis and the debt crisis in Italy in the 2010s

“…Another methodology, which is of direct interest to us, was proposed in the work (Torres Filho et al, 2017). In the same way as Nishi, the authors start from accounting for the company's cash flow, namely, the main indicators of the receipt and use of funds are current financial inflows and current financial outflows.…”

“…Torres Filho et al (2017) and Caldentey et al (2018) are one of the most recent available empirical studies. These works, in fact, summarize all previous publications.…”

“…The authors refined this methodology and developed their own index of financial fragility. The second work is a study of corporate debt in Latin America for 2009-2016 based on methodologies developed in the publications of Mulligan et al (2014) andTorres Filho et al (2017). However, besides calculating indicators for 2241 firms, the authors of this work (Caldentey et al, 2018) also constructed an econometric model with robust errors.…”

An Unintended Consequence of Uncoordinated International Monetary Policy on Central America

“…For an example of how the mortgage boom may have increased the financial vulnerability of households in the US, see Weller and Sabatini (2008). For an example of the financial fragility of firms within the electricity sector in Brazil, see Torres Filho et al (2017).…”

Corporate debt in Latin America and its macroeconomic implications

“…These include Mulligan (2013), Nishi (2016), Davis, Souza, and Hernandez (2017), and Torres Filho, Marins, and Miaguti (2017), as summarized in table 4 by highlighting the objective, data, time domain, definition, thresholds for financing regimes (hedge, speculative, and Ponzi), and measurement for each. 8 We use the first and the last available of these studies (Mulligan [2013] andTorres Filho, Marins, andMiaguti [2017]) to classify our sample of non-bond-issuing and bond-issuing firms for the years 2010 and 2015 into hedge, speculative, and Ponzi categories according to the criteria and thresholds provided by the authors.…”