| Autor: |
Heller, Yuval, SharonPeleg-Lazar, Raviv, Alon |
| Rok vydání: |
2020 |
| Předmět: |
|
| Zdroj: |
Economics Letters, Volume 181, August 2019, Pages 169-173 |
| Druh dokumentu: |
Working Paper |
| DOI: |
10.1016/j.econlet.2019.05.003 |
| Popis: |
Black and Cox (1976) claim that the value of junior debt is increasing in asset risk when the firm's value is low. We show, using closed-form solution, that the junior debt's value is hump-shaped. This has interesting implications for the market-discipline role of banks' junior debt. |
| Databáze: |
arXiv |
| Externí odkaz: |
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