UNIGE document Preprint
previous document  unige:73277  next document
add to browser collection
Title

Strategic Default, Debt Structure, and Stock Returns

Author
Submitted to Journal of Financial and Quantitative Analysis. 2014
Description 56
Abstract This paper theoretically and empirically investigates how the debt structure and the strategic interaction between 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 US firms between 1985 and 2012, the paper presents new evidence on the link between debt structure and stock returns that is supportive of the model's predictions.
Keywords Debt structureDebt renegotiationStock returns
Identifiers
Full text
Article (Preprint) (273 Kb) - document accessible for UNIGE members only Limited access to UNIGE
Other version: http://www.valta.ch/final_debt_structure_web.pdf
Structures
Citation
(ISO format)
VALTA, Philip. Strategic Default, Debt Structure, and Stock Returns. Submitted to: Journal of Financial and Quantitative Analysis, 2014. https://archive-ouverte.unige.ch/unige:73277

295 hits

2 downloads

Update

Deposited on : 2015-06-22

Export document
Format :
Citation style :