Firm-level political risk and debt choice
WebAug 1, 2024 · As indicated by Table 5, the negative and significant coefficient of EPU in the Volume equation suggests that an appetite for debt financing does not lead to higher issuance volume. ... Raising... WebOct 1, 2024 · We uncover that firm-level political risk has a negative impact on a firm's total and long-term leverage. We also find that firms facing high political risk tend to prefer debts with short-term maturity. ... Asset redeployability and the choice between bank debt and public debt. Journal of Corporate Finance, Volume 64, 2024, Article 101678 ...
Firm-level political risk and debt choice
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WebSep 19, 2024 · Relationship and outside loans have similar interest rates during distress and even 2 years prior to distress. Relative to outside loans in distress, relationship loans in distress have lower maturity. The fraction of bank lending given by relationship banks reduces during borrower distress. WebFeb 16, 2024 · We focus on political risk, a setting that is well-suited to analyzing a firm’s portfolio of activities, and an area in which, to our knowledge, the model and insights we develop are new as a way of explaining firm choices. It is very common for multinational firms to cite political exposure as a rationale for geographic diversification.
WebSep 1, 2024 · However, firm-level political risk is positively related to debt specialisation, suggesting that firms are more inclined to adopt fewer debt types when they face high … WebApr 11, 2024 · All sovereign debt restructurings risk undershooting (providing less debt relief than is needed to restore the country to long-term sustainability) or overshooting (extracting more debt relief from creditors than turns out to have actually been necessary).. Of these, undershooting will be the greater risk in sovereign debt workouts in the post …
WebAug 1, 2014 · We examine the effect of firm-level political risk on debt choices and find: (i) firms with higher political risk display a preference for private debt over public debt; (ii) the magnitude of this ... WebJun 1, 2024 · In this study, we use Republican CEOs to signal conservative managers and link CEO political ideology and conservatism to credit ratings through lower financial risk. 3 Anecdotal evidence suggests that, due to the prospective impact of management corporate policies on the firm's future financial profile, credit rating agencies assess …
WebAbstract We examine the effect of firm-level political risk on debt choices and find: (i) firms with higher political risk display a preference for private debt over public debt; (ii) …
WebAbstract We examine the effect of firm-level political risk on debt choices and find: (i) firms with higher political risk display a preference for private debt over public debt; (ii) … track ford factory orderWebApr 15, 2015 · This paper tests how collateral value affects a firm’s choice between bank debt and public debt by considering the exogenous variation in the market value of a … track ford focus sedanWebAug 1, 2024 · Models of political risk predict that increases in political uncertainty cause stock prices to fall, especially for politically sensitive firms. We use the event of the Bo Xilai political scandal in 2012 in China as an exogenous shock to identify the impact of political uncertainty on asset prices. track ford lightningWebvan Lent and Tahoun (2024) stresses the importance of considering firm-level political risk. • Empirically, they propose a quantified firm-level political risk measure and show that … the rock heartsWebNov 27, 2024 · Our difference-in-differences approach shows that exogenous increases in information asymmetry lead firms to substitute away from equity and public debt toward … track ford maverick orderWebMapping the Impacts of Political Risk in Corporate Finance: A Firm-Level Diversification and Debt-Maturity Perspective A Dissertation Submitted to the Graduate Faculty of the University of New Orleans in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Financial Economics by Mohammad Sydul Karim the rock heating and airWebFeb 1, 2011 · However, firm-level political risk is positively related to debt specialisation, suggesting that firms are more inclined to adopt fewer debt types when they face high political risk. Further analysis reveals that firms with high political risk are associated with a faster speed of adjustment to target than those with low political risk. track ford mach e by vin number