Colonnello, Stefano; Efing, Matthias; Zucchi, Francesca - 2017 - This draft: May 17, 2017
powerful shareholders in distressed debt renegotiations. Consistent with this prediction, we show that (1) creditors buy more … CDS protection when facing strong shareholders, and that (2) CDS trading reduces the distance-to-default, investment, and … value of firms with powerful shareholders. …