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He, Zhiguo - 2012

We study rollover risk and collateral value in a dynamic asset pricing model with endogenous debt financing by … news. We demonstrate the optimality of the maximum riskless short-term debt financing for optimistic borrowers even in the …

Persistent link: https://www.econbiz.de/10012460724

The creation of the rule of law and the legitimacy of property rights : the political and economic consequences of a corrupt privatization

Hoff, Karla Ruth - 2005

"How does the lack of legitimacy of property rights affect the dynamics of the creation of the rule of law? We investigate the demand for the rule of law in post-Communist economies after privatization under the assumption that theft is possible, that those who have "stolen" assets cannot be...

Persistent link: https://www.econbiz.de/10010522421

Valuation of Long-Term Property Rights under Political Uncertainty

He, Zhiguo - 2020

We empirically analyze pricing of political uncertainty in long-term property rights, guided by a theoretical model of housing assets subject to contract extension in the remote future. To identify exposure to political uncertainty, we exploit a unique variation around land lease extension...

Persistent link: https://www.econbiz.de/10012481213

The Creation of the Rule of Law and the Legitimacy of Property Rights : The Political and Economic Consequences of a Corrupt Privatization

Hoff, Karla - 2005

How does the lack of legitimacy of property rights affect the dynamics of the creation of the rule of law? We investigate the demand for the rule of law in post-Communist economies after privatization under the assumption that theft is possible, that those who have "stolen" assets cannot be...

Persistent link: https://www.econbiz.de/10012466899

After the Big Bang? Obstacles to the Emergence of the Rule of Law in Post-Communist Societies

Hoff, Karla - 2002

When Russia launched mass privatization, it was widely believed that it would create a powerful constituency for the rule of law. That didn't happen. We present a dynamic equilibrium model of the political demand for the rule of law and show that beneficiaries of mass privatization may fail to...

Persistent link: https://www.econbiz.de/10012469426

Share Pledging in China : Funding Listed Firms or Funding Entrepreneurship?

He, Zhiguo; Liu, Bibo; Zhu, Feifei - National Bureau of Economic Research - 2022

This paper studies the connection between share pledging and entrepreneurial activities in China, challenging the common wisdom that share pledging funds circle back to the listed firms. Share pledging funds are at the discretion of the shareholders who pledge their publicly traded shares, and...

Persistent link: https://www.econbiz.de/10012938700

Rollover Risk and Credit Risk

He, Zhiguo - 2010

This paper models a firm's rollover risk generated by conflict of interest between debt and equity holders. When the firm faces losses in rolling over its maturing debt, its equity holders are willing to absorb the losses only if the option value of keeping the firm alive justifies the cost of...

Persistent link: https://www.econbiz.de/10012462997

Dynamic Debt Runs

He, Zhiguo - 2009

We develop a dynamic model of debt runs on a firm, which invests in an illiquid asset by rolling over staggered short-term debt contracts. We derive a unique threshold equilibrium, in which creditors coordinate their asynchronous rollover decisions based on the firm's publicly observable and...

Persistent link: https://www.econbiz.de/10012463167

Asymmetric Information and the New Theory of the Firm : Financial Constraints and Risk Behavior

Greenwald, Bruce C. - 1990

This paper summarizes recent developments in the theory of the firm that have arisen in examining the implications of imperfect information. It shows that a wide range of these models have similar implications for the likely reaction of firms to external environmental and policy changes. Two...

Persistent link: https://www.econbiz.de/10012475674

Debt and Creative Destruction : Why Could Subsidizing Corporate Debt be Optimal?

He, Zhiguo - 2012

We illustrate the welfare benefit of tax subsidies to corporate debt financing. Two firms engage in a socially wasteful … amount of debt financing, resulting in a two dimensional war of attrition. Debt financing increases incentives to exit, which …, while socially beneficial, is costly for the firm. Therefore the planner can increase welfare by subsidizing debt financing …

Persistent link: https://www.econbiz.de/10012460738