Debt renegotiation under reputation concerns and tolerance for failure

2019 ◽  
Vol 41 (1) ◽  
pp. 36-48
Author(s):  
Hind Sami
Keyword(s):  
Debt Renegotiation

scholarly journals Strategic Default, Debt Structure, and Stock Returns

2016 ◽  
Vol 51 (1) ◽  
pp. 197-229 ◽  
Author(s):  
Philip Valta
Keyword(s):  
Stock Returns ◽  
Large Fraction ◽  
Convertible Debt ◽  
Debt Structure ◽  
Publicly Traded ◽  
Debt Renegotiation ◽  
Strategic Default ◽  
Expected Stock Returns ◽  
Debt Holders ◽  
New Evidence

AbstractThis paper theoretically and empirically investigates how debt structure and strategic interaction among shareholders and debt holders in the event of default affect expected stock returns. The model predicts that expected stock returns are higher for firms that face high debt renegotiation difficulties and that have a large fraction of secured or convertible debt. Using a large sample of publicly traded U.S. firms for the period 1985–2012, the paper presents new evidence on the link between debt structure and stock returns that is supportive of the model’s predictions.

Bankruptcy laws and debt renegotiation

2008 ◽  
Vol 4 (1) ◽  
pp. 40-61 ◽  
Author(s):  
Ludek Kolecek
Keyword(s):  
Debt Renegotiation
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