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Systematic risk, debt maturity, and the term structure of credit spreads

Chen, Hui; Xu, Yu; Yang, Jun - 2012

Persistent link: https://www.econbiz.de/10009628112

Systematic risk, debt maturity and the term structure of credit spreads

Chen, Hui; Xu, Yu; Yang, Jun - 2012

We build a dynamic capital structure model to study the link between systematic risk exposure and debt maturity, as … the maturity structure. Relative to short-term debt, long-term debt is less prone to rollover risks, but its illiquidity … favour longer debt maturity, as well as a more stable maturity structure over the business cycle. Pro-cyclical debt maturity …

Persistent link: https://www.econbiz.de/10009583690

Pouring oil on fire : interest deductibility and corporate debt

Dallari, Pietro; End, Nicolas; Miryugin, Fedor; Tieman, … - 2018

This paper investigates the role of tax incentives towards debt finance in the buildup of leverage in the nonfinancial corporate (NFC) sector, using a large firm-level dataset. We find that so-called debt bias is a significant driver of leverage, for both small and medium-sized enterprises and...

Persistent link: https://www.econbiz.de/10011978432

Debt overhang and the macroeconmics of carry trade

Wijnbergen, Sweder van; Jakucionyte, Egle - 2016

The depreciation of the Hungarian forint in 2009 left Hungarian borrowers with a skyrocketing value of foreign currency debt. The resulting losses worsened debt overhang in to debt-ridden firms and eroded bank capital. Therefore, although Hungarian banks had partially isolated their balance...

Persistent link: https://www.econbiz.de/10011583537

Heterogeneity in corporate debt structures and the transmission of monetary policy

Holm-Hadulla, Fédéric; Thürwächter, Claire - 2020

We study how differences in the aggregate structure of corporate debt financing affect the transmission of monetary policy. Using high-frequency financial market data to identify monetary policy shocks in a panel of euro area countries, we find that: bond finance dampens the overall response of...

Persistent link: https://www.econbiz.de/10012212853

The dynamics of corporate debt structure

Zechner, Josef; Halling, Michael; Yu, Jin - 2020

Persistent link: https://www.econbiz.de/10012220962

Structural reforms in a debt overhang

Andrés, Javier; Arce, Óscar; Thomas, Carlos - 2014

Persistent link: https://www.econbiz.de/10011783097

Corporate debt overhang and investment : firm-level evidence

Borensztein, Eduardo; Ye, Lei - 2018

This paper investigates empirically the linkages between corporate debt overhang and investment activity at the firm level for a cross section of large-sized emerging market and developing economies. It analyzes the extent to which investment may be discouraged by high levels of debt that put at...

Persistent link: https://www.econbiz.de/10011903156

Debt restructuring with multiple bank relationships

Baglioni, Angelo; Colombo, Luca; Rossi, Paola - 2019

When the debt of firms in distress is dispersed, a restructuring agreement is difficult to reach because of free riding. We develop a repeated game in which banks come across each other frequently, allowing them to threaten a punishment in case of free riding. As the number of lending banks...

Persistent link: https://www.econbiz.de/10011962128

Debt restructuring with multiple bank relationships

Baglioni, Angelo; Colombo, Luca; Rossi, Paola - 2018

Persistent link: https://www.econbiz.de/10011944440