How big is the debt overhang problem?

DOI10.1016/J.JEDC.2005.10.008MaRDI QIDQ959740zbMATH OpenOpenAlexFDO

Authors Nathalie Moyen

Publication date 12 December 2008

Published in Journal of Economic Dynamics and Control (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1016/j.jedc.2005.10.008

zbMATH Keywords

dynamic capital structuredebt overhangagency problemsunderinvestment

Mathematics Subject Classification ID

Economic models of real-world systems (e.g., electricity markets, etc.) (91B74) Economic growth models (91B62)

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Cites work

• A Dynamic Model of Optimal Capital Structure
• A Simple, Positive Semi-Definite, Heteroskedasticity and Autocorrelation Consistent Covariance Matrix
• Accuracy in Simulations
• Corporation Tax, Finance and the Cost of Capital

Cited in

(5)

• The role of non-convex costs in firms' investment and financial dynamics
• Debt and private investment: does the EU suffer from a debt overhang?
• Does performance-sensitive debt mitigate debt overhang?
• Leveraged investments and agency conflicts when cash flows are mean reverting
• The debt hangover: Renegotiation with noncontractible investment

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