01699cas a2200253 a 4500 AALejournalIMF001058 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451856323 1018-5941 BD-DhAAL BD-DhAAL Kim, Se-Jik. Corporate Leverage, Bankruptcy, and Output Adjustment in Post-Crisis East Asia / Se-Jik Kim, Mark Stone. Washington, D.C. : International Monetary Fund, 1999. 1 online resource (29 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Different levels of corporate leverage are used in this paper to help explain the wide range of post-crisis output adjustment across East Asia. In the model developed here, highly leveraged firms facing a cutoff of capital inflows are threatened by bankruptcy. These firms respond by eliminating investment and selling their capital goods-at a discount-to try to stay afloat. Lower investment and wasteful capital sales shrink the aggregate capital stock, trigger deflationary pressures, and contract overall output. The available data are broadly consistent with the assumptions and predictions of the model. Mode of access: Internet Stone, Mark. IMF Working Papers; Working Paper ; No. 1999/143 Full text available on IMF http://elibrary.imf.org/view/journals/001/1999/143/001.1999.issue-143-en.xml IMF e-Library