Barthélémy, Fabrice; Fisher, Timothy C.G.; Martel, Jocelyn - Théorie Économique, Modélisation, Application … - 2006
Using data from financial reorganization plans filed by insolvent Canadian firms, we estimate the discount rate implicit in the unsecured creditors' reorganization decision. Using (HARA) utility functions, we find the implicit monthly discount rate of creditors to be 4.9%, which corresponds to...