Huang, Hsing-Hua; Lee, Han-Hsing - In: Journal of Banking & Finance 37 (2013) 2, pp. 324-340
This study theoretically and empirically investigates effects of product market competition on credit risk. We first develop a real-options-based structural model in a homogeneous oligopoly and show that credit spreads are positively related to the number of firms in an industry. The disparity...