1. Monica Marin: Can Risk Management Help Prevent Bankruptcy? Discussant: Christian Thomann

2. 2 Main Findings Risk Management Lowers Risk of Bankruptcy Increases Distance to Default Decreases Asset Volatility Asset Volatility is Reduced if a Company starts to Manage Risks Other Findings Probability of Bankruptcy Decreases with Size Probability of Bankruptcy Increases with Leverage

3. Christian Thomann 3 Questions How did the New-Economy Bubble Affect the Companies in the Dataset? M-to-B Ratios? 20 % of Companies from the Communications Sector Most of the Bankruptcies occur 2000/01 How do your Models on the Asset Volatility of Bankrupt and Non-bankrupt Firms Compare to the Literature?