Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/wiley/a-theory-of-workouts-and-the-effects-of-reorganization-law-L7QEo4w61S
References (43)
-
D. Cutler, L. Summers (1987)
The Costs of Conflict Resolution and Financial Distress: Evidence from the Texaco-Pennzoil LitigationCorporate Finance: Governance
-
Jeremy Bulow, J. Shoven (1978)
The bankruptcy decisionThe Bell Journal of Economics, 9
-
Roe Roe (1987)
The voting prohibition in bond workoutsThe Yale Law Journal, 97
-
Michael Jensen (1986)
Agency Cost of Free Cash Flow, Corporate Finance, and TakeoversIndustrial Organization & Regulation eJournal
-
T. Hoshi, A. Kashyap, D. Scharfstein (1990)
The Role of Banks in Reducing the Costs of Financial Distress in JapanBanking & Insurance
-
M. White (1980)
Public Policy Toward Bankruptcy: Me-First and Other Priority RulesThe Bell Journal of Economics, 11
-
Jensen Jensen (1986)
Agency costs of free cash flow, corporate finance, and takeoversAmerican Economic Review, 76
-
L. Bebchuk (1985)
Toward Undistorted Choice and Equal Treatment in Corporate TakeoversCorporate Finance: Governance
-
S. Myers (1977)
Determinants of corporate borrowingJournal of Financial Economics, 5
-
B. Bernanke, J. Campbell, Toni Whited (1990)
U.S. corporate leverage: developments in 1987 and 1988, 21
-
V. Aivazian, Jeffrey Callen (1983)
Reorganization in bankruptcy and the issue of strategic riskJournal of Banking and Finance, 7
-
Kenneth Froot, D. Scharfstein, J. Stein (1988)
Ldc Debt: Forgiveness, Indexation, and Investment IncentivesNBER Working Paper Series
-
M. Roe (1987)
The Voting Prohibition in Bond WorkoutsLaw & Society: Public Law eJournal
-
Froot Froot (1989)
Buybacks, exit bonds, and the optimality of debt and liquidity reliefInternational Economic Review, 30
-
The only difference is the limits of integration. Note that the left-hand side of (A18) is increasing in Z^ and since Xf -
S. Titman (1984)
The effect of capital structure on a firm's liquidation decision☆Journal of Financial Economics, 13
-
Cutler Cutler, Summers Summers (1988)
The costs of conflict resolution and financial distress: Evidence from the Texaco‐Pennzoil litigationRand Journal of Economics, 19
-
(1990)
Protection of bondholders from unfair constrained-choice tender offers. Unpublished manuscript -
R. Stulz, H. Johnson (1985)
An analysis of secured debtJournal of Financial Economics, 14
-
Michael Jensen, W. Meckling (1976)
Theory of the Firm -
Ron Giammarino (1989)
The Resolution of Financial DistressReview of Financial Studies, 2
-
M. White (1983)
Bankruptcy Costs and the New Bankruptcy CodeJournal of Finance, 38
-
B. Bernanke, J. Campbell (1988)
Is There a Corporate Debt Crisis, 1988
-
Franks Franks, Torous Torous (1989)
An empirical investigation of firms in reorganizationJournal of Finance, 44
-
R. Haugen, Lemma Senbet (1978)
THE INSIGNIFICANCE OF BANKRUPTCY COSTS TO THE THEORY OF OPTIMAL CAPITAL STRUCTUREJournal of Finance, 33
-
(1989)
The information content of exchange offers made by distressed firms. Unpublished manuscript. Graduate School of Business -
P. Asquith, D. Mullins, Eric Wolff (1989)
Original Issue High Yield Bonds: Aging Analyses of Defaults, Exchanges, and CallsJournal of Finance, 44
-
(1984)
Corporate financing and investment decisions when firms have information that investors do not have -
Bebchuk Bebchuk (1985)
Towards an undistorted choice and equal treatment in corporate takeoversHarvard Law Review, 98
-
(1990)
Opportunistic behavior in debt renegotiations and an interior optimal capital structure of the firm without deadweight costs -
Kenneth Froot (1988)
Buybacks, Exit Bonds, and the Optimality of Debt and Liquidity ReliefNBER Working Paper Series
-
(1990)
Inefficiency in three-person bargaining -
Froot Froot, Scharfstein Scharfstein, Stein Stein (1989)
LDC debt: Forgiveness, indexation, and investment incentivesJournal of Finance, 44
-
Stuart Gilson, Kose John, Larry Lang (1990)
Troubled debt restructurings*1: An empirical study of private reorganization of firms in defaultJournal of Financial Economics, 27
-
Jensen Jensen, Meckling Meckling (1976)
Theory of the firm: Managerial behavior, agency costs, and ownership structureJournal of Financial Economics, 3
-
D. Baird, Randal Picker (1991)
A Simple Noncooperative Bargaining Model of Corporate ReorganizationsThe Journal of Legal Studies, 20
-
Jeremy Bulow, Kenneth Rogoff (1989)
Sovereign Debt Repurchases: No Cure for OverhangInternational Finance eJournal
-
E. Berkovitch, E. Kim (1990)
Financial Contracting and Leverage Induced Over‐ and Under‐Investment IncentivesJournal of Finance, 45
-
M. Kuhn, T. McPartland (1954)
An empirical investigation of self-attitudes.American Sociological Review, 19
-
David Brown (1989)
Claimholder Incentive Conflicts in Reorganization: The Role of Bankruptcy LawReview of Financial Studies, 2
-
D. Baird (1986)
The Uneasy Case for Corporate ReorganizationsThe Journal of Legal Studies, 15
-
Hoshi Hoshi, Kashyap Kashyap, Scharfstein Scharfstein (1990)
The role of banks in reducing the costs of financial distress in JapanJournal of Financial Economics, 27
-
M. Roe (1983)
Bankruptcy and Debt: A New Model for Corporate ReorganizationCGN: Dissolutions & Bankruptcy Reorganizations (Topic)
- Publisher
- Wiley
- Copyright
- 1991 The American Finance Association
- ISSN
- 0022-1082
- eISSN
- 1540-6261
- DOI
- 10.1111/j.1540-6261.1991.tb04615.x
- Publisher site
- See Article on Publisher Site
Abstract
ABSTRACT We present a model of a financially distressed firm with outstanding bank debt and public debt. Coordination problems among public debtholders introduce investment inefficiencies in the workout process. In most cases, these inefficiencies are not mitigated by the ability of firms to buy back their public debt with cash and other securities—the only feasible way that firms can restructure their public debt. We show that Chapter 11 reorganization law increases investment, and we characterize the types of corporate financial structures for which this increased investment enhances efficiency.
Journal
The Journal of Finance – Wiley
Published: Sep 1, 1991