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Debt with many creditors is analyzed in a continuous-time pricing model of the levered firm in the presence of corporate taxes. We specifically allow for debtor opportunism in form of repeated strategic renegotiation offers and default threats. Dispersed creditors will only accept coupon...
Persistent link: https://www.econbiz.de/10012741314
We analyze the role of knowhow acquisition in the formation and duration of joint ventures. Two parties become partners in a joint venture to benefit from each other's knowhow. Joint operations provide each party with the opportunity to acquire part of its partner's knowhow. A party's increased...
Persistent link: https://www.econbiz.de/10012717042
In a market-based financial system, credit is held by dispersed creditors, and out-of-court renegotiation of debt is more likely to fail because of hold-out problems; in a bank-based system, out-of-court renegotiation stands good chances to succeed. Since out-of-court renegotiation is a...
Persistent link: https://www.econbiz.de/10012712265
We analyze the role of knowhow acquisition in the formation and duration of joint ventures. Two parties become partners in a joint venture in order to benefit from each other's knowhow. Joint operations in the joint venture provide each party with the opportunity to acquire part of its partner's...
Persistent link: https://www.econbiz.de/10012727915
When firms experience financial distress, equity-holders may act strategically, forcing concessions from debt-holders and paying less than the originally-contracted interest payments. This paper incorporates strategic debt service in a standard, continuous time asset pricing model, developing...
Persistent link: https://www.econbiz.de/10012792153
We analyze the role of knowhow acquisition in the formation and duration of joint ventures. Two parties become partners in a joint venture in order to benefit from each other's knowhow. Joint operations in the joint venture provide each party with the opportunity to acquire part of its partner's...
Persistent link: https://www.econbiz.de/10012776980
Debt with many creditors is analyzed in a continuous-time pricing model of the levered firm in the presence of corporate taxes. We specifically allow for debtor opportunism in form of repeated strategic renegotiation offers and default threats. Dispersed creditors will only accept coupon...
Persistent link: https://www.econbiz.de/10012754552
This paper documents the fact that, when debtors decide to default on their obligations too early, it is in creditors' collective interest, as residual claimants, to make concessions prior to forcing a costly liquidation. Symmetrically, when debtors prefer to default at an inefficiently late...
Persistent link: https://www.econbiz.de/10012789721
Persistent link: https://www.econbiz.de/10004319877
Persistent link: https://www.econbiz.de/10004359553