Cliff Effect

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Cliff Effect

In economics, the disproportionately positive or negative results of an action. For example, suppose a company takes on too much debt and a credit ratings agency downgrades its bond rating. This may increase the company's borrowing costs significantly, which in turn gives it less cash on hand to make coupon payments. This can lead to a further downgrade and the cycle continues. The cliff effect implies that relatively little separates a company from being seen as quite healthy to being seen as a poor investment.
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For NBTC and spectrum providers, although this trial period will have coverage limited to 4 cities, the feedback will provide good evaluation on the network coverage, signal transmission quality, digital cliff, public comments, technical emergencies, and effectiveness of the current public relation campaign.
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