Narrow search
Showing 1 - 6 of 6
Cover Image
Debt Financing in Asset Markets
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
Cover Image
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
Cover Image
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
Cover Image
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
Cover Image
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
Cover Image
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