Financial Fragility of Firms in Colombia, 2000-2006: A Discriminant Analysis of a Minskyan Model

42 Pages Posted: 17 Dec 2009

See all articles by Iván Rodríguez Bernate

Iván Rodríguez Bernate

Universidad Nacional de Colombia

Álvaro Martín Moreno Rivas

National University of Colombia

Date Written: December 15, 2009

Abstract

Based on Foley (2003), this article sets the financial situations of firms, classifying hedges, speculatives and Ponzi. On the other hand, it applies a discriminant analysis, a multivariate technique that classify empirically based on the financial indexes. As a result, the theoretical and empirical classifications are consistent and these shows that in the growing phase of a boom, there is a high percentage of hedge firms, and in turn, arises a slight spoilage of your financial stability. Thus, that gives an empirical evidence of relevant assertions of the Financial Instability Hypothesis; prove the microeconomic segment of Foley (2003) and sets out an alternative indicator of the financial fragility.

Note: Downloadable document is in Spanish.

JEL Classification: E120, E440, G010

Suggested Citation

Rodríguez Bernate, Iván and Moreno Rivas, Álvaro Martín, Financial Fragility of Firms in Colombia, 2000-2006: A Discriminant Analysis of a Minskyan Model (December 15, 2009). Available at SSRN: https://ssrn.com/abstract=1523910 or http://dx.doi.org/10.2139/ssrn.1523910

Iván Rodríguez Bernate (Contact Author)

Universidad Nacional de Colombia ( email )

Bogotá
Colombia

HOME PAGE: http://www.unal.edu.co

Álvaro Martín Moreno Rivas

National University of Colombia ( email )

Carrera 30 45-03
Bogota, None
Colombia

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