Showing 1 - 10 of 156
maturity of a country's external sovereign debt is the solution to an incentives problem, which may lead to reliance on short …
Persistent link: https://www.econbiz.de/10005666408
prefer long to short maturity debt because they are concerned with the risk of refinancing at higher than expected interest … rates. However, when long-term rates are high relative to their expectations, they issue short maturity debt to minimize …
Persistent link: https://www.econbiz.de/10005114507
In this paper we first propose a proxy for the maturity of a country’s export bundle based on product life cycle theory …. Employing a conditional latent class model, we then examine the effect of maturity of countries’ exports on their economic … faster when they specialize in less mature products in an advanced country regime. The effect of maturity turns insignificant …
Persistent link: https://www.econbiz.de/10011083276
average maturity of government debt. We analyse these relationships under two different institutional settings. In one case … given. We identify the main mechanisms through which inflation is affected by debt and debt maturity (a real balance effect … monetary and fiscal policy we find that the persistence and volatility of inflation depends on the sign, size and maturity …
Persistent link: https://www.econbiz.de/10011083281
This paper explores the relationship between inflation and the existence of a publicly-traded, long-maturity, nominal …
Persistent link: https://www.econbiz.de/10011084572
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
In this Paper we introduce flexibility as an economic concept and apply it to the firm’s security-issuance decisions and capital structure choice. Flexibility is the ability to make decisions that one thinks are best even when others disagree. Firms value flexibility because it allows...
Persistent link: https://www.econbiz.de/10005666532
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
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
We examine the risk-return characteristics of a rolling portfolio investment strategy where more than six thousand Nasdaq initial public offering (IPO) stocks are bought and held for up to five years. The average long-run portfolio return is low, but IPO stocks appear as ‘longshots’, as...
Persistent link: https://www.econbiz.de/10005124287