Pub Date : 2026-03-01Epub Date: 2026-01-22DOI: 10.1016/j.jcorpfin.2026.102963
Matteo Vacca
Using trading data from Finland, I document that some rank-and-file employees purchase options written on their employers’ stocks. These purchases are associated with subsequent weekly excess returns of approximately 60 basis points in the underlying stocks. The association is most pronounced before earnings announcements, extends to firms in the employer’s supply chain, is not explained by industry knowledge or trading skill, and weakens upon job separation. The results suggest that some rank-and-file employees attempt to exploit informational advantages by trading in the option market, raising questions about firms’ disclosure policies and the alignment of employee incentives with market efficiency.
{"title":"Insider trading with options: Evidence from rank-and-file employees","authors":"Matteo Vacca","doi":"10.1016/j.jcorpfin.2026.102963","DOIUrl":"10.1016/j.jcorpfin.2026.102963","url":null,"abstract":"<div><div>Using trading data from Finland, I document that some rank-and-file employees purchase options written on their employers’ stocks. These purchases are associated with subsequent weekly excess returns of approximately 60 basis points in the underlying stocks. The association is most pronounced before earnings announcements, extends to firms in the employer’s supply chain, is not explained by industry knowledge or trading skill, and weakens upon job separation. The results suggest that some rank-and-file employees attempt to exploit informational advantages by trading in the option market, raising questions about firms’ disclosure policies and the alignment of employee incentives with market efficiency.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"98 ","pages":"Article 102963"},"PeriodicalIF":5.9,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146073909","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-03-01Epub Date: 2026-01-06DOI: 10.1016/j.jcorpfin.2026.102950
Ming Gu , Dongxu Li , Zhitao Xiong
Complementing existing research on the inefficiencies of regulatory fragmentation, this study identifies a potential benefit: firms facing greater regulatory fragmentation experience lower stock price crash risk. Mechanism analyses suggest that such fragmentation enhances financial reporting quality, mitigates stock overpricing, and improves the accuracy of analyst forecasts. Firms subject to regulatory fragmentation also hold more cash and are less likely to pay dividends or repurchase shares. These findings indicate that the reduction in crash risk is associated with improved information disclosure and more conservative financial policies. Consistent with this notion, the effect is more pronounced among firms with high information uncertainty and tight financial constraints. Overall, this study sheds light on the ongoing discussion regarding optimal regulatory oversight schemes.
{"title":"Curbing stock price crash: The bright side of regulatory fragmentation","authors":"Ming Gu , Dongxu Li , Zhitao Xiong","doi":"10.1016/j.jcorpfin.2026.102950","DOIUrl":"10.1016/j.jcorpfin.2026.102950","url":null,"abstract":"<div><div>Complementing existing research on the inefficiencies of regulatory fragmentation, this study identifies a potential benefit: firms facing greater regulatory fragmentation experience lower stock price crash risk. Mechanism analyses suggest that such fragmentation enhances financial reporting quality, mitigates stock overpricing, and improves the accuracy of analyst forecasts. Firms subject to regulatory fragmentation also hold more cash and are less likely to pay dividends or repurchase shares. These findings indicate that the reduction in crash risk is associated with improved information disclosure and more conservative financial policies. Consistent with this notion, the effect is more pronounced among firms with high information uncertainty and tight financial constraints. Overall, this study sheds light on the ongoing discussion regarding optimal regulatory oversight schemes.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"98 ","pages":"Article 102950"},"PeriodicalIF":5.9,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145979920","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-03-01Epub Date: 2026-02-05DOI: 10.1016/j.jcorpfin.2026.102976
Markus Fütterer , Marc Steffen Rapp , Ignacio Requejo
Studying a monthly panel of European listed non-financial firms, we document a negative effect of economic policy uncertainty (EPU) on firm value but a positive effect on the valuation premium of founding family firms. These findings are confirmed in a propensity score–matched sample and remain robust to a battery of tests addressing omitted variable bias and measurement error. The lower EPU-sensitivity of founding family firms is concentrated in politically connected firms operating in low-corruption environments. Additional analyses show that founding family firms' valuation premium is more pronounced for R&D-intensive firms with less diversified and less labor-intensive business models. Overall, our results support the view that founding family firms are more resilient to uncertainty and may contribute to economic stability.
{"title":"Economic policy uncertainty and the founding family firm premium","authors":"Markus Fütterer , Marc Steffen Rapp , Ignacio Requejo","doi":"10.1016/j.jcorpfin.2026.102976","DOIUrl":"10.1016/j.jcorpfin.2026.102976","url":null,"abstract":"<div><div>Studying a monthly panel of European listed non-financial firms, we document a negative effect of economic policy uncertainty (EPU) on firm value but a positive effect on the valuation premium of founding family firms. These findings are confirmed in a propensity score–matched sample and remain robust to a battery of tests addressing omitted variable bias and measurement error. The lower EPU-sensitivity of founding family firms is concentrated in politically connected firms operating in low-corruption environments. Additional analyses show that founding family firms' valuation premium is more pronounced for R&D-intensive firms with less diversified and less labor-intensive business models. Overall, our results support the view that founding family firms are more resilient to uncertainty and may contribute to economic stability.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"98 ","pages":"Article 102976"},"PeriodicalIF":5.9,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147397738","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-03-01Epub Date: 2026-02-04DOI: 10.1016/j.jcorpfin.2026.102960
Konrad Adler , JaeBin Ahn , Mai Chi Dao
We study how trade liberalization affects financial and innovation decisions of large firms across major G7 countries. We document how firms increase their cash holdings when their country’s trading partners lower their import tariffs, while we find no effect of a decrease in the country’s own import tariffs. Specifically, we find that the increase in cash holdings occurs before tariff cuts by trading partners and is associated with higher R&D spending and patent filing after the cuts. Our results are consistent with the predictions of a model in which higher expected returns to innovation from enhanced export market access lead to higher cash buffers.
{"title":"Tariffs, corporate cash holdings, and innovation","authors":"Konrad Adler , JaeBin Ahn , Mai Chi Dao","doi":"10.1016/j.jcorpfin.2026.102960","DOIUrl":"10.1016/j.jcorpfin.2026.102960","url":null,"abstract":"<div><div>We study how trade liberalization affects financial and innovation decisions of large firms across major G7 countries. We document how firms increase their cash holdings when their country’s trading partners lower their import tariffs, while we find no effect of a decrease in the country’s own import tariffs. Specifically, we find that the increase in cash holdings occurs <em>before</em> tariff cuts by trading partners and is associated with higher R&D spending and patent filing <em>after</em> the cuts. Our results are consistent with the predictions of a model in which higher expected returns to innovation from enhanced export market access lead to higher cash buffers.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"98 ","pages":"Article 102960"},"PeriodicalIF":5.9,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147397663","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-03-01Epub Date: 2026-01-13DOI: 10.1016/j.jcorpfin.2026.102956
Jie Li , Liping Lu , Jin Wu , Tianhang Zhou
This paper examines the impact of financial deregulation, specifically, the removal of China's loan-to-deposit ratio (LDR) cap in 2015, on bank stability. We show that LDR deregulation strengthens the stability of LDR-constrained banks through three mechanisms. First, it alleviates competition for deposits, allowing banks to enhance their franchise value. Second, it enables banks to issue more long-term loans, supported by a more diversified funding base. Third, it reduces reliance on off-balance-sheet activities, such as principal-floating wealth management products, thereby lowering exposure to shadow banking risks. Collectively, these changes reinforce banks' maturity transformation abilities, ultimately improving their overall stability.
{"title":"Deregulation and bank stability: Evidence from loan-to-deposit ratio requirement in China","authors":"Jie Li , Liping Lu , Jin Wu , Tianhang Zhou","doi":"10.1016/j.jcorpfin.2026.102956","DOIUrl":"10.1016/j.jcorpfin.2026.102956","url":null,"abstract":"<div><div>This paper examines the impact of financial deregulation, specifically, the removal of China's loan-to-deposit ratio (LDR) cap in 2015, on bank stability. We show that LDR deregulation strengthens the stability of LDR-constrained banks through three mechanisms. First, it alleviates competition for deposits, allowing banks to enhance their franchise value. Second, it enables banks to issue more long-term loans, supported by a more diversified funding base. Third, it reduces reliance on off-balance-sheet activities, such as principal-floating wealth management products, thereby lowering exposure to shadow banking risks. Collectively, these changes reinforce banks' maturity transformation abilities, ultimately improving their overall stability.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"98 ","pages":"Article 102956"},"PeriodicalIF":5.9,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145979919","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-03-01Epub Date: 2026-01-09DOI: 10.1016/j.jcorpfin.2026.102954
Zuben Jin , Zhewei Cheng
This paper explores the emerging phenomenon of executive live streaming, in which corporate executives engage directly with broad audiences through live-streamed events. Using a manually collected dataset of executive live streaming events from 2016 to 2023, we explore the factors influencing the adoption of live streaming and its real effect on firm sales. Our findings show that firms with lower returns, higher stock volatility, and better disclosure quality are more likely to adopt live streaming, while an overseas background hinders adoption. Using propensity score matching (PSM) and difference-in-differences (DiD) methods, we find that executive live streaming leads to a 39.2% increase relative to the standard deviation of monthly online sales. Cross-sectional regressions of percentage changes of quarterly sales reveal a 17.9% increase in online sales and a 7.4% increase in total sales. The effect is stronger for male and younger executives and for firms with higher information asymmetry. Additionally, we find that executive live streaming significantly boosts firm visibility, as measured by increases in search volume index. Overall, these results underscore the strategic value of executive live streaming in enhancing stakeholder communication, consumer engagement and sales growth.
{"title":"Executive live streaming","authors":"Zuben Jin , Zhewei Cheng","doi":"10.1016/j.jcorpfin.2026.102954","DOIUrl":"10.1016/j.jcorpfin.2026.102954","url":null,"abstract":"<div><div>This paper explores the emerging phenomenon of executive live streaming, in which corporate executives engage directly with broad audiences through live-streamed events. Using a manually collected dataset of executive live streaming events from 2016 to 2023, we explore the factors influencing the adoption of live streaming and its real effect on firm sales. Our findings show that firms with lower returns, higher stock volatility, and better disclosure quality are more likely to adopt live streaming, while an overseas background hinders adoption. Using propensity score matching (PSM) and difference-in-differences (DiD) methods, we find that executive live streaming leads to a 39.2% increase relative to the standard deviation of monthly online sales. Cross-sectional regressions of percentage changes of quarterly sales reveal a 17.9% increase in online sales and a 7.4% increase in total sales. The effect is stronger for male and younger executives and for firms with higher information asymmetry. Additionally, we find that executive live streaming significantly boosts firm visibility, as measured by increases in search volume index. Overall, these results underscore the strategic value of executive live streaming in enhancing stakeholder communication, consumer engagement and sales growth.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"98 ","pages":"Article 102954"},"PeriodicalIF":5.9,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146034953","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-03-01Epub Date: 2025-12-24DOI: 10.1016/j.jcorpfin.2025.102939
Philip Fliegel
I investigate how to best measure firms' climate transition risk. Therefore, I gather a new dataset of firm-level climate transition risk metrics including reported EU taxonomy alignments of capex and revenues as well as emission intensities, E-scores from Refinitiv and MSCI, The Refinitiv Business Classification (TRBC), and text-based metrics. I find a strong divergence in transition risk metrics for companies. Thus, depending on the transition risk metric – a portfolio's transition risk profile will differ substantially. To evaluate the transition risk metrics, I measure the return sensitivity of nine brown and green portfolios– each constructed using a specific firm-level transition risk metric – to market-wide news indices that track transition risk shocks: the higher the sensitivity, the more effective the transition risk proxy. For green portfolios, I find that taxonomy and TRBC portfolios react most strongly to climate transition risk shocks. Forward-looking metrics seem to be particularly useful. For brown portfolios, only the MSCI E-score portfolio reacts significantly negative to transition risk shocks. The findings are robust across different world regions, different weighting and sampling methodologies and in an event-study setting. I conclude that markets currently price the upside risk for green firms stronger than the downside risk for brown firms.
{"title":"How you measure transition risk matters: comparing and evaluating climate transition risk metrics","authors":"Philip Fliegel","doi":"10.1016/j.jcorpfin.2025.102939","DOIUrl":"10.1016/j.jcorpfin.2025.102939","url":null,"abstract":"<div><div>I investigate how to best measure firms' climate transition risk. Therefore, I gather a new dataset of firm-level climate transition risk metrics including <em>reported</em> EU taxonomy alignments of capex and revenues as well as emission intensities, E-scores from Refinitiv and MSCI, The Refinitiv Business Classification (TRBC), and text-based metrics. I find a strong divergence in transition risk metrics for companies. Thus, depending on the transition risk metric – a portfolio's transition risk profile will differ substantially. To evaluate the transition risk metrics, I measure the return sensitivity of nine brown and green portfolios– each constructed using a specific firm-level transition risk metric – to market-wide news indices that track transition risk shocks: the higher the sensitivity, the more effective the transition risk proxy. For green portfolios, I find that taxonomy and TRBC portfolios react most strongly to climate transition risk shocks. Forward-looking metrics seem to be particularly useful. For brown portfolios, only the MSCI E-score portfolio reacts significantly negative to transition risk shocks. The findings are robust across different world regions, different weighting and sampling methodologies and in an event-study setting. I conclude that markets currently price the upside risk for green firms stronger than the downside risk for brown firms.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"98 ","pages":"Article 102939"},"PeriodicalIF":5.9,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145924018","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-03-01Epub Date: 2026-01-23DOI: 10.1016/j.jcorpfin.2026.102961
Cassandra R. Cole, Evan M. Eastman
Theory suggests that firms move through distinct lifecycle stages that are determined by internal and external factors. Empirical evidence indicates that firm behavior differs across lifecycle stages. Using a sample of financial firms, specifically insurance companies, and a cashflow-based measure of lifecycle stages, we examine how demand for risk management varies across the corporate lifecycle. Employing reinsurance as our proxy for risk management, our results suggest that demand for risk management differs across lifecycle stages, with firms using more reinsurance in the introduction, growth, shake-out, and decline stages. We also find evidence that there are observable differences in the relation between reinsurance use and lifecycle stages when considering external and internal reinsurance separately. Finally, when we jointly consider the impact of lifecycles and factors capturing the main theoretical motives for reinsurance use, we continue to observe differences in the relation between lifecycle stages and the demand for internal and external reinsurance.
{"title":"Risk management and corporate lifecycles: Evidence from reinsurance purchases","authors":"Cassandra R. Cole, Evan M. Eastman","doi":"10.1016/j.jcorpfin.2026.102961","DOIUrl":"10.1016/j.jcorpfin.2026.102961","url":null,"abstract":"<div><div>Theory suggests that firms move through distinct lifecycle stages that are determined by internal and external factors. Empirical evidence indicates that firm behavior differs across lifecycle stages. Using a sample of financial firms, specifically insurance companies, and a cashflow-based measure of lifecycle stages, we examine how demand for risk management varies across the corporate lifecycle. Employing reinsurance as our proxy for risk management, our results suggest that demand for risk management differs across lifecycle stages, with firms using more reinsurance in the introduction, growth, shake-out, and decline stages. We also find evidence that there are observable differences in the relation between reinsurance use and lifecycle stages when considering external and internal reinsurance separately. Finally, when we jointly consider the impact of lifecycles and factors capturing the main theoretical motives for reinsurance use, we continue to observe differences in the relation between lifecycle stages and the demand for internal and external reinsurance.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"98 ","pages":"Article 102961"},"PeriodicalIF":5.9,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146073912","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-03-01Epub Date: 2026-01-12DOI: 10.1016/j.jcorpfin.2026.102955
Hanzhong Shi , Min Teng , Wenming Wang , Kerui Zhai , Tianhui Li
This study investigates the impact of faultlines within the top management team (TMT) on the cost of bank loans. TMT faultlines divide a TMT into relatively homogeneous subgroups based on the alignment of members' demographic attributes, which can affect TMT functioning. We find that firms with stronger TMT faultlines incur higher loan spreads when seeking bank financing. The path analysis reveals that strong TMT faultlines increase both default risk and information risk, which in turn raise loan spreads charged by banks. Further tests show that the adverse effect of TMT faultlines on bank loan costs is mitigated when borrowing firms have strong corporate governance or borrow from relationship lenders, whereas this adverse effect is more pronounced during financial crisis period with credit tightening. Additionally, we find that borrowing firms with stronger TMT faultlines face higher facility and commitment fees and shorter loan maturities. Overall, this study contributes to the corporate governance literature by highlighting the economic consequences of TMT faultlines in debt contracting and offers practical implications for both debtors and creditors.
{"title":"Management faultlines and the cost of bank loans","authors":"Hanzhong Shi , Min Teng , Wenming Wang , Kerui Zhai , Tianhui Li","doi":"10.1016/j.jcorpfin.2026.102955","DOIUrl":"10.1016/j.jcorpfin.2026.102955","url":null,"abstract":"<div><div>This study investigates the impact of faultlines within the top management team (TMT) on the cost of bank loans. TMT faultlines divide a TMT into relatively homogeneous subgroups based on the alignment of members' demographic attributes, which can affect TMT functioning. We find that firms with stronger TMT faultlines incur higher loan spreads when seeking bank financing. The path analysis reveals that strong TMT faultlines increase both default risk and information risk, which in turn raise loan spreads charged by banks. Further tests show that the adverse effect of TMT faultlines on bank loan costs is mitigated when borrowing firms have strong corporate governance or borrow from relationship lenders, whereas this adverse effect is more pronounced during financial crisis period with credit tightening. Additionally, we find that borrowing firms with stronger TMT faultlines face higher facility and commitment fees and shorter loan maturities. Overall, this study contributes to the corporate governance literature by highlighting the economic consequences of TMT faultlines in debt contracting and offers practical implications for both debtors and creditors.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"98 ","pages":"Article 102955"},"PeriodicalIF":5.9,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146073910","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-03-01Epub Date: 2026-02-05DOI: 10.1016/j.jcorpfin.2026.102975
Abdolreza Nazemi , Friedrich Baumann , Frank J. Fabozzi
We examine the relationship between the recovery rates of defaulted U.S. corporate bonds and the issuing firm’s position within the U.S. economy’s inter-industry trade network. Our findings reveal that bonds issued by firms in more centrally connected industries typically realize higher recovery rates than those in peripheral industries. This is due to the strong inter-industry trade relationships, which provide a channel for transferring bankruptcy assets to alternative users across industry borders. Moreover, industry-wide distress emerges as a fundamental factor influencing recovery rates, with its effects spreading through the network’s trade connections, thereby reducing recovery rates in neighboring industries.
{"title":"Inter-industry network and corporate bond recovery rates","authors":"Abdolreza Nazemi , Friedrich Baumann , Frank J. Fabozzi","doi":"10.1016/j.jcorpfin.2026.102975","DOIUrl":"10.1016/j.jcorpfin.2026.102975","url":null,"abstract":"<div><div>We examine the relationship between the recovery rates of defaulted U.S. corporate bonds and the issuing firm’s position within the U.S. economy’s inter-industry trade network. Our findings reveal that bonds issued by firms in more centrally connected industries typically realize higher recovery rates than those in peripheral industries. This is due to the strong inter-industry trade relationships, which provide a channel for transferring bankruptcy assets to alternative users across industry borders. Moreover, industry-wide distress emerges as a fundamental factor influencing recovery rates, with its effects spreading through the network’s trade connections, thereby reducing recovery rates in neighboring industries.</div></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":"98 ","pages":"Article 102975"},"PeriodicalIF":5.9,"publicationDate":"2026-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147397659","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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