LIQUIDATION COSTS AND CAPITAL STRUCTURE

• 成果类型: Article
• 署名作者: ALDERSON, MJ; BETKER, BL
• 署名单位: University System of Ohio; Ohio State University; Saint Louis University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/0304-405X(94)00825-L
• 发表日期: 1995
• 页码: 45-69
• 关键词: capital structure; LIQUIDATION COSTS; JEL CLASSIFICATION; G32

摘要

We investigate the relation between liquidation costs of assets and composition of capital structure for firms that reorganized under Chapter 11 of the Bankruptcy Code. Firms with high liquidation costs emerge from Chapter 11 with relatively low debt ratios. The debt of these firms is more likely to be public and unsecured, and to have less restrictive covenant terms; these firms are also more likely to raise new equity capital. Assets with high liquidation costs thus lead firms to choose capital structures that make financial distress less likely.