Creditor Rights and Debt Allocation within Multinationals
نویسندگان
چکیده
منابع مشابه
Creditor Rights and Corporate Debt Structure∗
Much of our understanding of creditor rights is based on the notion that better enforcement of contracts reduces borrowing costs, thereby relaxing financial constraints. But what if these rights are too strong? We empirically investigate this question by examining the effect of a securitization reform that strengthened secured creditors rights on corporate debt structure. Strikingly, we find th...
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What role did the US courts play in the Argentine debt swap of 2005? What implications does this have for the future of creditor rights in sovereign bond markets? The judge in the Argentine case has, it appears, deftly exploited creditor heterogeneity – between holdouts seeking capital gains and institutional investors wanting a settlement – to promote a swap with a supermajority of creditors. ...
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What role did the US courts play in the Argentine debt swap of 2005? What implications does this have for the future of creditor rights in sovereign bond markets? The judge in the Argentine case has, it appears, deftly exploited creditor heterogeneity – between holdouts seeking capital gains and institutional investors wanting a settlement – to promote a swap with a supermajority of creditors. ...
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We propose that stronger creditor rights in bankruptcy affect corporate investments by reducing corporate risk-taking. In cross-country analysis, we find that stronger creditor rights induce greater propensity of firms to engage in diversifying acquisitions and of firms with low-recovery assets to acquire targets with high-recovery assets. These relations are strongest in countries where manage...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2008
ISSN: 1556-5068
DOI: 10.2139/ssrn.1102543