Covitz, Daniel M.; Han, Song; Wilson, Beth Anne - Federal Reserve Board (Board of Governors of the … - 2006
instrumental variables to control for the endogeneity of restructuring time and creditor return. Instrumenting proves critical to … our finding that creditor recovery rates increase with duration for roughly 1½ years following default, but decrease … thereafter. This, and similar results using the likelihood of reentering bankruptcy, suggest that there may be an optimal time in …