Arbeitspapier
Debt dynamics with fixed issuance costs
We investigate equilibrium debt dynamics for a firm that cannot commit to a future debt policy and is subject to a fixed restructuring cost. We formally characterize equilibria when the firm is not required to repurchase outstanding debt prior to issuing additional debt. For realistic values of issuance costs and debt maturity, the no-commitment policy generates tax benefits that are similar to those obtained by a benchmark policy with commitment. For positive but arbitrarily small issuance costs, there are maturities for which shareholders extract essentially the entire claim to cash-flows.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Paper ; No. WP 2023-01
- Klassifikation
-
Wirtschaft
Asset Pricing; Trading Volume; Bond Interest Rates
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
Bankruptcy; Liquidation
- Thema
-
Capital structure
Debt dynamics
Commitment
Issuance costs
Debt maturity
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Benzoni, Luca
Garlappi, Lorenzo
Goldstein, Robert S.
Ying, Chao
- Ereignis
-
Veröffentlichung
- (wer)
-
Federal Reserve Bank of Chicago
- (wo)
-
Chicago, IL
- (wann)
-
2023
- DOI
-
doi:10.21033/wp-2023-01
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Benzoni, Luca
- Garlappi, Lorenzo
- Goldstein, Robert S.
- Ying, Chao
- Federal Reserve Bank of Chicago
Entstanden
- 2023
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