Debt Overhang in the Eurozone: A Spatial Panel Analysis
نویسندگان
چکیده
منابع مشابه
Macroeconomic Risk and Debt Overhang∗
Since corporate debt tends to be riskier in recessions, transfers from equity holders to debt holders that accompany corporate decisions also tend to concentrate in recessions. Such systematic risk exposures of debt overhang have important implications for corporate investment and financing decisions, and for the ex ante costs of debt overhang. Using a calibrated dynamic capital structure model...
متن کاملDebt Overhang as a Delayed Penalty
This paper proposes a simple general equilibrium model of depression due to a financial shock and subsequent corporate-debt overhang. The " debt overhang problem " in the literature is the inefficiency caused by the penalty to the defaulters, such as the deterrence of new investments or the bankruptcy of debtors. This type of inefficiency is temporary and disappears as the new entrepreneurs ent...
متن کاملLoan Commitments and the Debt Overhang Problem
The debt overhang problem is shown to arise in the context of an entrepreneurial project that requires a sequence of investments financed by an outside lender. The entrepreneur, not internalizing losses accruing to the lender which financed the initial investments, may inefficiently cancel the project and instead pursue an outside opportunity. It is shown that loan commitments (contracts that a...
متن کاملCausal Nexus between Government Debt, Exports and Economic Growth for Three Eurozone Countries: A Panel Data Analysis
The relationship between government debt, exports and economic growth has been the focus of a considerable number of academic studies in recent years. The economic crisis, which started in the United States mortgage market, quickly went global when mortgage-backed securities traded by financial institutions. Europe’s response was immediate regarding the measures to tackle the crisis. The establ...
متن کاملDynamic Investment, Capital Structure, and Debt Overhang
We model dynamic investment, financing and default decisions of a firm, which begins its life with a collection of growth options. The firm exercises them optimally over time, and finances the costs of investment by adjusting its capital structure, which trades off the tax benefits with the distress cost of debt and the agency cost of investment distortions from potential debt overhang. Conflic...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Review of Regional Studies
سال: 2011
ISSN: 1553-0892,0048-749X
DOI: 10.52324/001c.8143