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The paper investigates the effects of macroeconomic conditions on firms' capital structure. We introduce a repeated lender-borrower interaction that allows for debt and equity financing to co-exist as optimal securities in every period. The presence of asymmetric information in the market for...
Persistent link: https://www.econbiz.de/10014050325
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-Offs: Living with Financial Globalisation"http://ssrn.com/abstract=2552573" Credit Booms: Implications for the Public and the …
Persistent link: https://www.econbiz.de/10013029209
Does the ability of suppliers of corporate debt capital to hedge risk through credit default swap (CDS) contracts … leverage ratios and longer debt maturities. This is especially true during periods in which credit constraints become binding …, as would be expected if the ability to hedge helps alleviate frictions on the supply side of credit markets …
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firms that report a need for credit, but did not apply for a loan, have the lowest incidence and amount of investment. Our …
Persistent link: https://www.econbiz.de/10013115696
This paper develops a new model of debt renegotiation in a structural framework, that accounts for both taxes and bankruptcy costs. We investigate situations where the manager can optimally (on behalf of the equity holder) impose a permanent coupon reduction to creditors, given that the new...
Persistent link: https://www.econbiz.de/10013105032
. This fact is robust to numerous controls for credit quality, industry, and business owner characteristics. The heavy … reliance on external debt underscores the importance of well functioning credit markets for the success of nascent business …
Persistent link: https://www.econbiz.de/10013069402
This study aims to investigate the relationship between creditor protection and the debt maturity structure of corporations in the Gulf Cooperation Council (GCC) countries. The GCC countries enjoy large GDPs, growing capital markets, especially the Islamic bonds (Sukuk) market, and negligible...
Persistent link: https://www.econbiz.de/10014362514