Excessive risk taking and the maturity structure of debt

DOI10.1016/J.JEDC.2011.06.011MaRDI QIDQ647672zbMATH OpenOpenAlexFDO

Authors Bertrand Djembissi

Publication date 24 November 2011

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.2011.06.011

zbMATH Keywords

asset substitutionrestructuringagency costsdebt maturity

Mathematics Subject Classification ID

Credit risk (91G40) Financial applications of other theories (91G80)

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Cites work

• Corporate control and real investment in incomplete markets
• Dynamic investment and capital structure under manager-shareholder conflict
• Financial Intermediation and Delegated Monitoring
• Finite project life and uncertainty effects on investment
• Switching to a poor business activity: optimal capital structure, agency costs and covenant rules

Cited in

(4)

• A theory of debt maturity and innovation
• Capital structure and tax convexity when the maturity of debt is finite
• Belief disagreement and debt maturity structure
• A closed-form solution to the risk-taking motivation of subordinated debtholders

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