Optimal capital structure and simultaneous bankruptcy of firms in corporate networks

DOI10.1016/J.JEDC.2021.104264MaRDI QIDQ2054846zbMATH OpenOpenAlexFDO

Authors Michi Nishihara, Takashi Shibata

Publication date 3 December 2021

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

Copyright license Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International

Full work available at URL https://doi.org/10.1016/j.jedc.2021.104264

zbMATH Keywords

contagionreal optionscapital structureherdingbankruptcy propagation

Mathematics Subject Classification ID

Corporate finance (dividends, real options, etc.) (91G50)

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Cites work

• Asset sale, debt restructuring, and liquidation
• Common failings: how corporate defaults are correlated
• Credit chains and bankruptcy propagation in production networks
• Liquidation, fire sales, and acquirers' private information
• Systemic risk in financial systems
• Trade credit and the propagation of corporate failure: an empirical analysis

Cited in

(3)

• Effects of Positive Jumps of Assets on Endogenous Bankruptcy and Optimal Capital Structure: Continuous- and Periodic-Observation Models
• Switching to a poor business activity: optimal capital structure, agency costs and covenant rules
• Reorganization or Liquidation: Bankruptcy Choice and Firm Dynamics

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