Bankruptcy and the Collateral Channel
Do bankrupt firms impose negative externalities on their nonbankrupt competitors? We propose and analyze a collateral channel in which a firm’s bankruptcy reduces the collateral value of other industry participants, thereby increasing their cost of debt financing. We identify the collateral channel...
| Main Authors: | , |
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| Other Authors: | |
| Format: | Article |
| Language: | en_US |
| Published: |
American Finance Association
2011
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| Online Access: | http://hdl.handle.net/1721.1/64634 https://orcid.org/0000-0001-6486-333X |