We present a model that shows how interactions between creditor groups in bankruptcy can affect the debt issuance decisions of firms, and test the most important implications of the theory. In particular, we show that firms that issue debt with a specific seniority level may tend to keep issuing...

There is a growing literature on the differential impact of soft vs. hard information on organizational structure and behavior. Most empirical papers on soft information study the financial intermediation industry. This is one of the few papers that measure the impact of soft information in a...

We present a model that shows how interactions between creditor groups in bankruptcy can affect the debt issuance decisions of firms. In particular, we show that firms that issue debt with a specific seniority level may tend to keep issuing debt at the same level to avoid the costs of conflicts...

We present a model that shows how interactions between creditor groups in bankruptcy can affect the debt issuance decisions of firms. In particular, we show that firms that issue debt with a specific seniority level may tend to keep issuing debt at the same level to avoid the costs of conflicts...

We present a model that shows how interactions between creditor groups in bankruptcy can affect the debt issuance decisions of firms. In particular, we suggest that deviations from APR should be priced and can affect the issuing decisions of junior and senior debt. Our model suggests that once...

We analyze project choice in the motion pictures industry and find evidence consistent with revenue maximization and excessive hedging. We focus on the production of violent films and films that feature sex and violence. We find that such movies do not provide excess returns, but they increase...

This paper uses a unique data set on screenplay sales to learn how the information content of a sales pitch affects sale prices. This is one of the few studies that analyze “soft information” outside the banking industry. We find that “soft information” proxies, such as the descriptive...