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 cha...
| Main Authors: | , |
|---|---|
| Other Authors: | |
| Format: | Article |
| Language: | English |
| Published: |
American Finance Association,
2011-06-21T17:20:59Z.
|
| Subjects: | |
| Online Access: | Get fulltext |