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Publicly-traded debt securities differ on a number of dimensions, including quality, maturity, seniority, security, and … leverage, growth opportunities and cash holdings are related with the convertibility, maturity and security structure of issued … appear to influence the types of securities that are issued. Consistent with commonly stated 'maturity-matching' arguments …
Persistent link: https://www.econbiz.de/10012773126
A firm chooses its debt maturity structure and default timing dynamically, both without commitment. Via the fraction of … newly issued short-term bonds, equity holders control the maturity structure, which affects their endogenous default …
Persistent link: https://www.econbiz.de/10013000527
We argue that time-series variation in the maturity of aggregate corporate debt issues arises because firms behave as … macro liquidity providers, absorbing the large supply shocks associated with changes in the maturity structure of government …
Persistent link: https://www.econbiz.de/10012759211
We present a DSGE model where firms optimally choose among alternative instruments of external finance. The model is used to explain the evolving composition of corporate debt during the financial crisis of 2008-09, namely the observed shift from bank finance to bond finance, at a time when the...
Persistent link: https://www.econbiz.de/10013040533
heterogeneity in financial contracting at the onset of the crisis by exploring ex-ante variation in long-term debt maturity. Our … credit supply shocks on corporate policies. For example, in the absence of a credit shock ("normal times"), the maturity … composition of long-term debt has no effect on investment outcomes. Likewise, maturity composition has no impact on investment …
Persistent link: https://www.econbiz.de/10013159521
of the maturity structure of debt. The objective of a firm with long-term assets is to maximize the effective maturity of … its liabilities across several refinancing cycles, rather than to maximize the maturity of the current bonds outstanding …. An advantage of short-term financing is that a firm, while in good financial health, can readjust its maturity structure …
Persistent link: https://www.econbiz.de/10012757874
-varying debt maturity choices, as well as its implications for the term structure of credit spreads. Compared to short-term debt … liquidity costs changing over the business cycle, our calibrated model implies that debt maturity is pro-cyclical, firms with … high systematic risk favor longer debt maturity, and that these firms will have more stable maturity structures over the …
Persistent link: https://www.econbiz.de/10013100984
The study is divided into four broad parts, beginning with an exploratory analysis of the data on expost returns on corporate equities and bonds for the 1926-80 period. In Part 2, we estimate the relationships between one-month expost returns on corporate bonds and equities andvariations in...
Persistent link: https://www.econbiz.de/10012763036
This paper begins by examining the ways in which pension liabilities are and are not like corporate bonds. Some conceptual issues involved in valuing future pension obligations are then discussed. The second section considers the advantage to firms of fully funding their pension obligations and...
Persistent link: https://www.econbiz.de/10013224994
This paper documents the puzzling evidence that a substantial number of large public non-financial US firms follow a zero-debt policy. Over the 1962-2009 period, on average 10.2% of such firms have zero debt and almost 22% have less than 5% book leverage ratio. Neither industry nor size can...
Persistent link: https://www.econbiz.de/10013108257