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作者：Becker, Thomas A.; Shabani, Reza
作者单位：University of California System; University of California Berkeley
摘要：This article examines the effect of household debt on investment decisions. We alter a simple portfolio choice model to allow households to retire outstanding debt and realize a risk-free rate of return equal to the interest rate on that debt. Using the Survey of Consumer Finances, we find that households with mortgage debt are 10% less likely to own stocks and 37% less likely to own bonds compared to similar households with no mortgage debt. We calculate the costs of nonoptimal investment in ...
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作者：Hanley, Kathleen Weiss; Hoberg, Gerard
作者单位：Federal Reserve System - USA; Federal Reserve System Board of Governors; University System of Maryland; University of Maryland College Park
摘要：Using word content analysis, we decompose information in the initial public offering prospectus into its standard and informative components. Greater informative content, as a proxy for premarket due diligence, results in more accurate offer prices and less underpricing, because it decreases the issuing firm's reliance on bookbuilding to price the issue. The opposite is true for standard content. Greater content from high reputation underwriters and issuing firm managers, through Management's ...
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作者：Berndt, Antje; Ritchken, Peter; Sun, Zhiqiang
作者单位：University System of Ohio; Case Western Reserve University; Carnegie Mellon University
摘要：We establish Markovian models in the Heath, Jarrow, and Morton (1992) paradigm that permit an exponential affine representation of riskless and risky bond prices while offering significant flexibility in the choice of volatility structures. Estimating models in our family is typically no more difficult than in the workhorse affine family. Besides diffusive and jump-induced default correlations, defaults can impact the credit spreads of surviving firms, allowing for a greater clustering of defa...
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作者：von Thadden, Ernst-Ludwig; Bergloef, Erik; Roland, Gerard
作者单位：University of Mannheim; Stockholm School of Economics; University of California System; University of California Berkeley
摘要：This article integrates the problem of designing corporate bankruptcy rules into a theory of optimal debt structure. We show that, in an optimal contracting framework with imperfect renegotiation, having multiple creditors increases a firm's debt capacity while increasing its incentives to default strategically. The optimal debt contract gives creditors claims that are jointly inconsistent in case of default. Bankruptcy rules are therefore a necessary part of the overall financing contract, to...
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作者：Ross, David Gaddis
作者单位：Columbia University
摘要：Three large banks control over half of the U.S. commercial loan market by volume through the syndication process. Using attributes of a borrower's location to instrument for lender borrower matching, I show that the borrower stock price response to a loan announcement is more favorable if one of these dominant banks is the lender, especially if the borrower is opaque. I then show that these banks charge lower interest rates and are more likely to lend without the protection of a borrowing base...
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作者：Hege, Ulrich; Hennessy, Christopher
作者单位：Hautes Etudes Commerciales (HEC) Paris; University of London; London Business School
摘要：This article analyzes optimal financial contracts for an incumbent and potential entrant accounting for prospective asset mergers. Exercising a first-mover advantage, the incumbent increases his share of surplus by issuing public debt that appreciates in the event of merger. Incumbent debt reduces the equilibrium value of entrant assets and thus reduces the return to (likelihood of) entry through two channels: venture capitalists recover less in default and ownership rights provide weaker mana...
