Colonnello, Stefano; Efing, Matthias; Zucchi, Francesca - 2018 - This draft: May 17, 2018
Credit default swaps (CDSs) can create empty creditors who potentially force borrowers into inefficient bankruptcy but also reduce shareholders' incentives to default strategically. We show theoretically and empirically that the presence and the effects of empty creditors on firm outcomes depend...