Asset liquidity, capital structure, and secured debt
نویسندگان
چکیده
منابع مشابه
Asset liquidity , capital structure , and secured debt $
This paper investigates the impact of asset liquidity on the valuation of corporate securities and the firm’s financing decisions. I show that asset liquidity increases debt capacity only when bond covenants restrict the disposition of assets. By contrast, I demonstrate that, with unsecured debt, greater liquidity increases credit spreads on corporate debt and reduces optimal leverage. The mode...
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I examine how bank liquidity and capital affect banks’ behavior in asset sales using data on sales of bank owned real estate. I find that: (1) banks with lower liquidity levels post lower asking prices and receive lower sale prices; (2) banks with lower capital levels post higher asking prices, which then lead to longer time on the market. Further analyses show that the results are unlikely to ...
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ژورنال
عنوان ژورنال: Journal of Financial Economics
سال: 2001
ISSN: 0304-405X
DOI: 10.1016/s0304-405x(01)00059-9