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Creditor Rights and Debt Allocation within Multinationals
Akbel, Basak; Schnitzer, Monika - C.E.P.R. Discussion Papers - 2010
We analyze the optimal debt structure of multinational corporations choosing between centralized or decentralized borrowing. We identify how this choice is affected by creditor rights and bankruptcy costs, taking into account managerial incentives and coinsurance considerations. We find that...
Persistent link: https://www.econbiz.de/10008466341
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Disagreement and Flexibility: A Theory of Optimal Security Issuance and Capital Structure
Boot, Arnoud W A; Thakor, Anjan - C.E.P.R. Discussion Papers - 2003
strongest implication of this theory of capital structure evolution is that optimal capital structure is essentially dynamic … prices are low. The theory explains many stylized facts that fly in the face of existing capital structure theories and also … generates new testable predictions. Moreover, the theory can rationalize the use of debt in the absence of taxes, agency costs …
Persistent link: https://www.econbiz.de/10005666532
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Limits of Limits of Arbitrage: Theory and Evidence
Hombert, Johan; Thesmar, David - C.E.P.R. Discussion Papers - 2009
We present a model where arbitrageurs operate on an asset market that can be hit by information shocks. Before entering the market, arbitrageurs are allowed to optimize their capital structure, in order to take advantage of potential underpricing. We find that, at equilibrium, some arbitrageurs...
Persistent link: https://www.econbiz.de/10005666728
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Credit Risk and Dynamic Capital Structure Choice
Dangl, Thomas; Zechner, Josef - C.E.P.R. Discussion Papers - 2003
This Paper analyses the effect of dynamic capital structure adjustments on credit risk. Firms may optimally adjust their leverage in response to stochastic changes in firm value. It is shown that capital structure dynamics lower optimal initial leverage ratios but increase both fair credit...
Persistent link: https://www.econbiz.de/10005123682
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Liquidity Risk, Leverage and Long-Run IPO Returns
Eckbo, B Espen; Norli, Øyvind - C.E.P.R. Discussion Papers - 2005
We examine the risk-return characteristics of a rolling portfolio investment strategy where more than six thousand …
Persistent link: https://www.econbiz.de/10005124287
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A New Test of Capital Structure
Mayer, Colin; Sussman, Oren - C.E.P.R. Discussion Papers - 2004
This Paper reports a new test of capital structure theories. It uses a filtering technique to identify large investment …
Persistent link: https://www.econbiz.de/10005067393
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Who is Afraid of Political Risk? Multinational Firms and their Choice of Capital Structure
Kesternich, Iris; Schnitzer, Monika - C.E.P.R. Discussion Papers - 2007
decrease, depending on the type of political risk. Using the Microdatabase Direct Investment of the Deutsche Bundesbank, we …
Persistent link: https://www.econbiz.de/10005067659
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Capital Structure and Regulation: Do Ownership and Regulatory Independence Matter?
Bortolotti, Bernardo; Cambini, Carlo; Rondi, Laura; … - C.E.P.R. Discussion Papers - 2008
, and it also has a positive and significant effect on their market values. Our results are consistent with the theory that …
Persistent link: https://www.econbiz.de/10005497873
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Moral Hazard and Capital Structure Dynamics
Dewatripont, Mathias; Legros, Patrick; Matthews, Steven A - C.E.P.R. Discussion Papers - 2002
We base a contracting theory for a start-up firm on an agency model with observable but nonverifiable effort, and …
Persistent link: https://www.econbiz.de/10005498043
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Outside Finance, Dominant Investors and Strategic Transparency
Perotti, Enrico C; von Thadden, Ernst-Ludwig - C.E.P.R. Discussion Papers - 2001
transparency. We can predict a clustering of attributes: bank dominance, established firms with valuable investment, but also …
Persistent link: https://www.econbiz.de/10005656269