Strategic Default and Equity Risk Across Countries

Material TypeArticleLanguageEnglish
TitleStrategic Default and Equity Risk Across Countries Author(S)GIOVANNI FAVARA (Author)
Abstract  We show that the prospect of a debt renegotiation favorable to shareholders reduces the firm’s equity risk. Equity beta and return volatility are lower in countries where the bankruptcy code favors debt renegotiations and for firms with more shareholder bargaining power relative to debt holders. ...Paginationp 2051–2095
Journal TitleThe Journal of Finance  
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