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Debt Structure When Bankruptcy Law Offers Incentives to Restructure

Hasan, Iftekhar - 2019

We augment the LLSV creditor rights index with a new “restructuring index” that measures the incentives provided to creditors to grant concessions outside formal bankruptcy. We study the joint impact of the two indexes on a firm's leverage policy. We show that the two indexes have at most a...

Persistent link: https://www.econbiz.de/10012903408

Corporate debt structure over the global credit cycle

Boyarchenko, Nina; Elias, Leonardo - 2024

We study the determinants of active debt management through issuance and refinancing decisions for firms around the world. We leverage instrument-level data to create a comprehensive picture of the maturity, currency, and security type composition of firms' debt for a large cross-section of...

Persistent link: https://www.econbiz.de/10015154729

Financial leverage and debt maturity targeting : international evidence

Gungoraydinoglu, Ali; Öztekin, Özde - In: Journal of risk and financial management : JRFM 14 (2021) 9, pp. 1-36

We provide evidence on leverage and debt maturity targeting in a large international setting. There are key differences in the relative importance of institutional factors in explaining actual as opposed to target capital structures. Targets and target deviations are plausibly influenced by the...

Persistent link: https://www.econbiz.de/10012628492

Corporate governance, product market competition and debt financing

Paligorova, Teodora; Yang, Jun - 2014

This paper examines the impact of product market competition and corporate governance on the cost of debt financing and the use of bond covenants. We find that more antitakeover provisions are associated with a lower cost of debt only in competitive industries. Because they are exposed to higher...

Persistent link: https://www.econbiz.de/10010238953

International debt shifting : do multinationals shift internal or external debt? ; conference paper

Møen, Jarle; Schindler, Dirk; Schjelderup, Guttorm; … - 2013

-tax countries. We study the capital structure of multinationals and expand previous theory by incorporating debt tax shield effects …

Persistent link: https://www.econbiz.de/10010342883

Are Corporate Default Probabilities Consistent with the Static Tradeoff Theory?

Hovakimian, Armen - 2011

Default probability plays a central role in the static tradeoff theory of capital structure. We directly test this … theory by regressing the probability of default on proxies for costs and benefits of debt. Contrary to predictions of the … theory, firms with higher bankruptcy costs, i.e., smaller firms and firms with lower asset tangibility, choose capital …

Persistent link: https://www.econbiz.de/10013122204

Are Corporate Default Probabilities Consistent with the Static Tradeoff Theory?

Hovakimian, Armen - 2011

Probability of default plays a central role in the static tradeoff theory of capital structure. We provide a direct … test of this theory by regressing the probability of default, measured by S&P credit ratings and Moody's KMV Expected …. Contrary to predictions of the theory, firms with high bankruptcy costs, that is smaller firms and firms with lower asset …

Persistent link: https://www.econbiz.de/10013122234

Economic forecast and corporate leverage choices : the role of the institutional environment

Pindado, Julio; Requejo, Ignacio; Rivera, Juan C. - In: International review of economics & finance : IREF 51 (2017), pp. 121-144

Persistent link: https://www.econbiz.de/10011754144

Do stronger creditors' rights and an efficient bankruptcy process affect the speed of adjustment to target capital structure? : evidence from a quasi-natural experiment

Rawal, Dilesh; Mahakud, Jitendra; Mishra, Rohan Kumar - In: Cogent economics & finance 12 (2024) 1, pp. 1-13

This study investigates the impact of the Insolvency and Bankruptcy Code (IBC) on the capital structure speed of … financial strategies and align with the dynamic trade-off theory, highlighting firms' active adjustment towards optimal capital …, regulators, and corporate executives. The objective of this study was to investigates the effect of the Insolvency and Bankruptcy …

Persistent link: https://www.econbiz.de/10015338056

Thin capitalization rules and multinational firm capital structure

Blouin, Jennifer L.; Huizinga, Harry; Laeven, Luc; … - 2014

This paper examines the impact of thin capitalization rules that limit the tax deductibility of interest on the capital structure of the foreign affiliates of US multinationals. We construct a new data set on thin capitalization rules in 54 countries for the period 1982-2004. Using confidential...

Persistent link: https://www.econbiz.de/10010256736