This article introduces decision models for commercial real estate leasing. The concepts and models developed in the article can also be applied to equipment leasing and other types of leasing.
本文介绍了商业地产租赁的决策模型。本文提出的概念和模型也适用于设备租赁和其他类型的租赁。
{"title":"On the Choice between a Sale-Leaseback and Debt","authors":"Michael C. I. Nwogugu","doi":"10.22495/cocv5i4c2p6","DOIUrl":"https://doi.org/10.22495/cocv5i4c2p6","url":null,"abstract":"This article introduces decision models for commercial real estate leasing. The concepts and models developed in the article can also be applied to equipment leasing and other types of leasing.","PeriodicalId":437258,"journal":{"name":"Corporate Finance: Capital Structure & Payout Policies","volume":"52 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126668611","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The correct way of valuing seasonal companies by cash flow discounting is to use monthly data. It is possible to use annual data, but it requires some adjustments. In this paper the author shows that when using annual data in the context of the adjusted present value (APV), the calculations of the value of the unlevered equity (Vu) and the value of the tax shields (VTS) must be adjusted. However, the debt that has to be substracted to calculate the equity value does not need to be adjusted. The author derives the adjustments to be made. The errors due to using annual data without making the adjustments are big. Adjusting the calculations only by using average debt and average working capital requirements does not provide a good approximation. When the inventories are a liquid commodity such as grain or seeds, it is not correct to consider all of them as working capital requirements. Excess inventories financed with debt are equivalent to a set of futures contracts. The author shows that not considering them as such leads to an undervaluation of the company. This paper values a company in which the seasonality is due to the purchases of raw materials: the company buys and pays for all raw materials in the month of December. It is shown that the equity value calculated using annual data without making the adjustments understates the true value by 45% if the valuation is done at the end of December, and overstates the true value by 38% if the valuation is done at the end of November. The error due to adjusting only by using average debt and average working capital requirements ranges from -17.9% to 8.5%.
{"title":"How to Value a Seasonal Company Discounting Cash Flows","authors":"Pablo Fernández","doi":"10.2139/ssrn.406220","DOIUrl":"https://doi.org/10.2139/ssrn.406220","url":null,"abstract":"The correct way of valuing seasonal companies by cash flow discounting is to use monthly data. It is possible to use annual data, but it requires some adjustments. In this paper the author shows that when using annual data in the context of the adjusted present value (APV), the calculations of the value of the unlevered equity (Vu) and the value of the tax shields (VTS) must be adjusted. However, the debt that has to be substracted to calculate the equity value does not need to be adjusted. The author derives the adjustments to be made. The errors due to using annual data without making the adjustments are big. Adjusting the calculations only by using average debt and average working capital requirements does not provide a good approximation. When the inventories are a liquid commodity such as grain or seeds, it is not correct to consider all of them as working capital requirements. Excess inventories financed with debt are equivalent to a set of futures contracts. The author shows that not considering them as such leads to an undervaluation of the company. This paper values a company in which the seasonality is due to the purchases of raw materials: the company buys and pays for all raw materials in the month of December. It is shown that the equity value calculated using annual data without making the adjustments understates the true value by 45% if the valuation is done at the end of December, and overstates the true value by 38% if the valuation is done at the end of November. The error due to adjusting only by using average debt and average working capital requirements ranges from -17.9% to 8.5%.","PeriodicalId":437258,"journal":{"name":"Corporate Finance: Capital Structure & Payout Policies","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-05-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116130134","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper shows that asymmetric information about the timing of earnings can affect capital structure. It sheds new light on the following issues: why profitable firms may be interested in issuing equity and why debt does not necessarily signal a firm’s quality. These issues seem to be puzzling from the classical pecking-order theory or signalling theory point of view. The paper also contributes to the analysis of the link between capital structure choice and a firm’s expected performance (short-term and long-term). An empirical analysis confirms most of our theoretical results.
{"title":"Timing of Earnings and Capital Structure","authors":"A. Miglo","doi":"10.2139/ssrn.2907200","DOIUrl":"https://doi.org/10.2139/ssrn.2907200","url":null,"abstract":"This paper shows that asymmetric information about the timing of earnings can affect capital structure. It sheds new light on the following issues: why profitable firms may be interested in issuing equity and why debt does not necessarily signal a firm’s quality. These issues seem to be puzzling from the classical pecking-order theory or signalling theory point of view. The paper also contributes to the analysis of the link between capital structure choice and a firm’s expected performance (short-term and long-term). An empirical analysis confirms most of our theoretical results.","PeriodicalId":437258,"journal":{"name":"Corporate Finance: Capital Structure & Payout Policies","volume":"53 9","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-09-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114039915","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We explore sell-side debt analysts’ contributions to the efficiency of securities markets. We document that debt returns lag equity returns less when debt research coverage exists, consistent with debt analysts facilitating the process by which available information is impounded in debt prices. The effect is incremental to, but comparable in magnitude to, hedge fund ownership’s effect. No such effect exists for credit rating agencies. We also find that the dissemination of debt reports has an immediate effect on return volatility in both markets, consistent with debt analysts providing new information to securities markets. Increased return covariation suggests that this information impacts the pricing of debt and equity in the same direction. A large percentage of debt reports do not induce any immediate debt market return reaction but do induce an equity return reaction, consistent with new information being provided despite the absence of a debt market reaction. Finally, there is systematic variation in the debt market’s trading and return reactions to debt research. Timely reports and those by high-reputation brokers induce a quicker trading response, thus enhancing liquidity, while only timely reports induce a greater return response. This study illuminates the institutional underpinnings of debt market efficiency, and it has important implications for information content tests in the debt market, where trading is limited.
{"title":"Sell-Side Debt Analysts and Debt Market Efficiency","authors":"Umit G. Gurun, Rick Johnston, S. Markov","doi":"10.2139/ssrn.1148898","DOIUrl":"https://doi.org/10.2139/ssrn.1148898","url":null,"abstract":"We explore sell-side debt analysts’ contributions to the efficiency of securities markets. We document that debt returns lag equity returns less when debt research coverage exists, consistent with debt analysts facilitating the process by which available information is impounded in debt prices. The effect is incremental to, but comparable in magnitude to, hedge fund ownership’s effect. No such effect exists for credit rating agencies. We also find that the dissemination of debt reports has an immediate effect on return volatility in both markets, consistent with debt analysts providing new information to securities markets. Increased return covariation suggests that this information impacts the pricing of debt and equity in the same direction. A large percentage of debt reports do not induce any immediate debt market return reaction but do induce an equity return reaction, consistent with new information being provided despite the absence of a debt market reaction. Finally, there is systematic variation in the debt market’s trading and return reactions to debt research. Timely reports and those by high-reputation brokers induce a quicker trading response, thus enhancing liquidity, while only timely reports induce a greater return response. This study illuminates the institutional underpinnings of debt market efficiency, and it has important implications for information content tests in the debt market, where trading is limited.","PeriodicalId":437258,"journal":{"name":"Corporate Finance: Capital Structure & Payout Policies","volume":"99 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122561068","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We test the influence of classification of securities into liabilities and equity on firms' financing choices, using as our setting the change in reporting classification of hybrid securities following SFAS 150. We find that this change affected the decision of firms to issue mandatorily redeemable preferred shares (MRPS). Following the requirement that firms classify the debt-like hybrid security MRPS as a liability, the share of MRPS issuances in firms' new financing declined. Characteristics of firms issuing MRPS also changed. While prior to SFAS 150 firms with higher levels of debt and lower coverage ratios chose to issue MRPS and not debt, after its adoption, the decision to issue MRPS is no longer related to firms' pre-existing debt and coverage levels. Furthermore, our results indicate that before SFAS 150 managers were willing to bear the higher issuance fees of MRPS and chose to issue these debt-like hybrid securities over cheaper debt. The requirement to classify debt-like hybrids as a liability took away the reporting incentives for issuance and made these securities a less popular financing vehicle.
{"title":"The Impact of Debt-Equity Reporting Classifications on the Firms' Decision to Issue Hybrid Securities","authors":"S. Levi, Benjamin Segal","doi":"10.2139/ssrn.861685","DOIUrl":"https://doi.org/10.2139/ssrn.861685","url":null,"abstract":"We test the influence of classification of securities into liabilities and equity on firms' financing choices, using as our setting the change in reporting classification of hybrid securities following SFAS 150. We find that this change affected the decision of firms to issue mandatorily redeemable preferred shares (MRPS). Following the requirement that firms classify the debt-like hybrid security MRPS as a liability, the share of MRPS issuances in firms' new financing declined. Characteristics of firms issuing MRPS also changed. While prior to SFAS 150 firms with higher levels of debt and lower coverage ratios chose to issue MRPS and not debt, after its adoption, the decision to issue MRPS is no longer related to firms' pre-existing debt and coverage levels. Furthermore, our results indicate that before SFAS 150 managers were willing to bear the higher issuance fees of MRPS and chose to issue these debt-like hybrid securities over cheaper debt. The requirement to classify debt-like hybrids as a liability took away the reporting incentives for issuance and made these securities a less popular financing vehicle.","PeriodicalId":437258,"journal":{"name":"Corporate Finance: Capital Structure & Payout Policies","volume":"63 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121985592","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Building on the biological concept of a life cycle, the paper analyzes the issue of the strategic financing choice of firms through the lens of the life cycle framework. Using data for the 1994-2003 period, from a sample of Iberian firms the paper investigates 379 start-ups (789 firm year observations) and 2 325 firms (19 647 firm year observations) distributed by the other three phases of the life cycle model adopted for the study.Univariate results document that the debt ratio increases over the life cycle of firms. This empirical finding is consistent with the conjecture that firms tend to adopt specific financing strategies as they progress along the phases of their life cycles.We found evidence that can be interpreted as consistent with a pecking order model of financing. Findings also indicate that the theory that short-term debt may have a role in firm strategic financing choice. A significant industry effect for all variables included in the analysis was found as well.Overall, findings provide support to the notion that the design of financing strategy is influenced, among other factors, by asymmetric information considerations, and growth opportunities.
{"title":"Do Firms Have Financing Preferences Along Their Life Cycles? Evidence from Iberia","authors":"G. Teixeira, Mário Coutinho dos Santos","doi":"10.2139/ssrn.676869","DOIUrl":"https://doi.org/10.2139/ssrn.676869","url":null,"abstract":"Building on the biological concept of a life cycle, the paper analyzes the issue of the strategic financing choice of firms through the lens of the life cycle framework. Using data for the 1994-2003 period, from a sample of Iberian firms the paper investigates 379 start-ups (789 firm year observations) and 2 325 firms (19 647 firm year observations) distributed by the other three phases of the life cycle model adopted for the study.Univariate results document that the debt ratio increases over the life cycle of firms. This empirical finding is consistent with the conjecture that firms tend to adopt specific financing strategies as they progress along the phases of their life cycles.We found evidence that can be interpreted as consistent with a pecking order model of financing. Findings also indicate that the theory that short-term debt may have a role in firm strategic financing choice. A significant industry effect for all variables included in the analysis was found as well.Overall, findings provide support to the notion that the design of financing strategy is influenced, among other factors, by asymmetric information considerations, and growth opportunities.","PeriodicalId":437258,"journal":{"name":"Corporate Finance: Capital Structure & Payout Policies","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2014-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129934654","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We propose a model of intertemporal competition for institutional capital in initial public offerings (IPOs) of equity. A firm issuing shares in period t courts institutional investors that also consider investing in a firm that will issue shares in the next period. We characterize stationary equilibria in two regimes: 1) when all issuers use bookbuilding, 2) when all issuers use fixed price offer.Issuers compete for institutional capital and in equilibrium pay rent to institutional investors: the shares are underpriced on average and institutional orders are treated favorably. Bookbuilding is more flexible than fixed price offer and permits the issuer to promise a higher return to institutional investors. When institutional resources are limited individually each issuer prefers bookbuilding. Yet, bookbuilding intensifies intertemporal competition for institutional capital among issuers. In this case the issuers would jointly benefit if bookbuilding would not be allowed. Our theory accords with many empirical findings about IPOs.
{"title":"Intertemporal Competition for Institutional Capital in IPOs","authors":"S. Kovbasyuk","doi":"10.2139/ssrn.1343971","DOIUrl":"https://doi.org/10.2139/ssrn.1343971","url":null,"abstract":"We propose a model of intertemporal competition for institutional capital in initial public offerings (IPOs) of equity. A firm issuing shares in period t courts institutional investors that also consider investing in a firm that will issue shares in the next period. We characterize stationary equilibria in two regimes: 1) when all issuers use bookbuilding, 2) when all issuers use fixed price offer.Issuers compete for institutional capital and in equilibrium pay rent to institutional investors: the shares are underpriced on average and institutional orders are treated favorably. Bookbuilding is more flexible than fixed price offer and permits the issuer to promise a higher return to institutional investors. When institutional resources are limited individually each issuer prefers bookbuilding. Yet, bookbuilding intensifies intertemporal competition for institutional capital among issuers. In this case the issuers would jointly benefit if bookbuilding would not be allowed. Our theory accords with many empirical findings about IPOs.","PeriodicalId":437258,"journal":{"name":"Corporate Finance: Capital Structure & Payout Policies","volume":"11 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-12-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123056518","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
En mayo de 2013, y ante el malestar detectado en las encuestas debido a las Cajas de Ahorros, el Presidente de un Gobierno encargo a 6 personas la elaboracion de un informe sobre lo que habia sucedido con las cajas, con las participaciones preferentes…y sobre acciones para mejorar la situacion y la percepcion de Espana en el extranjero. El caso contiene el informe que realizaron y plantea varias preguntas (unas estan respondidas y otras no). El lector debe responder todas. Tambien se le agradecera mucho que senale los aspectos con los que no este de acuerdo y anada la informacion relevante que eche en falta. Los apendices contienen un requerimiento notarial enviado por Liberbank al autor del caso, la contestacion de este y las opiniones de 112 antiguos alumnos sobre el contenido del caso y del requerimiento notarial. This case deals with the merger of three Spanish Saving Banks into Liberbank. It provides data to judge the behavior of the auditors and of the Bank of Spain.
{"title":"Liberbank, las Preferentes de Caja Cantabria y el Banco de España (Liberbank, Preferred and Bank of Spain)","authors":"Pablo Fernández","doi":"10.2139/SSRN.908543","DOIUrl":"https://doi.org/10.2139/SSRN.908543","url":null,"abstract":"En mayo de 2013, y ante el malestar detectado en las encuestas debido a las Cajas de Ahorros, el Presidente de un Gobierno encargo a 6 personas la elaboracion de un informe sobre lo que habia sucedido con las cajas, con las participaciones preferentes…y sobre acciones para mejorar la situacion y la percepcion de Espana en el extranjero. El caso contiene el informe que realizaron y plantea varias preguntas (unas estan respondidas y otras no). El lector debe responder todas. Tambien se le agradecera mucho que senale los aspectos con los que no este de acuerdo y anada la informacion relevante que eche en falta. Los apendices contienen un requerimiento notarial enviado por Liberbank al autor del caso, la contestacion de este y las opiniones de 112 antiguos alumnos sobre el contenido del caso y del requerimiento notarial. This case deals with the merger of three Spanish Saving Banks into Liberbank. It provides data to judge the behavior of the auditors and of the Bank of Spain.","PeriodicalId":437258,"journal":{"name":"Corporate Finance: Capital Structure & Payout Policies","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129368964","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Spanish Abstract: La conclusion fundamental es que los multiplos casi siempre tienen una gran dispersion. Por este motivo las valoraciones realizadas por multiplos son casi siempre muy cuestionables. Sin embargo, los multiplos si son utiles en una segunda fase de la valoracion: una vez realizada la valoracion por descuento de flujos, una comparacion con los multiplos de empresas comparables permite calibrar la valoracion realizada e identificar diferencias entre la empresa valorada y las comparables. Tambien pueden ser utiles para calcular el valor terminal en una valoracion por descuento de flujos, siempre que el multiplo utilizado tenga una magnitud y una interpretacion “sensatas”.English Abstract: This paper focuses on equity valuation using multiples. Our basic conclusion is that multiples nearly always have broad dispersion, which is why valuations performed using multiples may be highly debatable. We revise the 14 most popular multiples and deal with the problem of using multiples for valuation: their dispersion. 1,200 multiples from 175 companies illustrate the dispersion of multiples of European utilities, English utilities, European constructors, hotel companies, telecommunications, banks and Internet companies. However, multiples are useful in a second stage of the valuation: after performing the valuation using another method, a comparison with the multiples of comparable firms enables us to gauge the valuation performed and identify differences between the firm valued and the firms it is compared with.
{"title":"Utilidad y limitaciones de las valoraciones por múltiplos (Valuations with Multiples)","authors":"Pablo Fernández, Jose M. Carabias","doi":"10.2139/SSRN.918469","DOIUrl":"https://doi.org/10.2139/SSRN.918469","url":null,"abstract":"Spanish Abstract: La conclusion fundamental es que los multiplos casi siempre tienen una gran dispersion. Por este motivo las valoraciones realizadas por multiplos son casi siempre muy cuestionables. Sin embargo, los multiplos si son utiles en una segunda fase de la valoracion: una vez realizada la valoracion por descuento de flujos, una comparacion con los multiplos de empresas comparables permite calibrar la valoracion realizada e identificar diferencias entre la empresa valorada y las comparables. Tambien pueden ser utiles para calcular el valor terminal en una valoracion por descuento de flujos, siempre que el multiplo utilizado tenga una magnitud y una interpretacion “sensatas”.English Abstract: This paper focuses on equity valuation using multiples. Our basic conclusion is that multiples nearly always have broad dispersion, which is why valuations performed using multiples may be highly debatable. We revise the 14 most popular multiples and deal with the problem of using multiples for valuation: their dispersion. 1,200 multiples from 175 companies illustrate the dispersion of multiples of European utilities, English utilities, European constructors, hotel companies, telecommunications, banks and Internet companies. However, multiples are useful in a second stage of the valuation: after performing the valuation using another method, a comparison with the multiples of comparable firms enables us to gauge the valuation performed and identify differences between the firm valued and the firms it is compared with.","PeriodicalId":437258,"journal":{"name":"Corporate Finance: Capital Structure & Payout Policies","volume":"5 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133175660","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Dynamic incentives, where incentives to repay are generated by granting access to future loans, are one of the methodologies used by microfinance institutions (MFIs). In this paper, I present a model of dynamic incentives where lenders are uncertain over how much borrowers value future loans. Loan terms are determined endogenously, and loans become more favorable as the probability of default becomes lower. I show that in all equilibria but one all borrowers, including the most patient ones, eventually default. I then consider an extension where borrowers can take loans from several lenders, double-dipping. Qualitatively, properties of equilibria with and without double-dipping are similar. In absolute terms, when borrowers are credit-constrained double-dipping equilibrium loans have to be more favorable to outweigh increased gains from default.
{"title":"Microfinance and Dynamic Incentives","authors":"Dmitry A. Shapiro","doi":"10.2139/ssrn.1260825","DOIUrl":"https://doi.org/10.2139/ssrn.1260825","url":null,"abstract":"Dynamic incentives, where incentives to repay are generated by granting access to future loans, are one of the methodologies used by microfinance institutions (MFIs). In this paper, I present a model of dynamic incentives where lenders are uncertain over how much borrowers value future loans. Loan terms are determined endogenously, and loans become more favorable as the probability of default becomes lower. I show that in all equilibria but one all borrowers, including the most patient ones, eventually default. I then consider an extension where borrowers can take loans from several lenders, double-dipping. Qualitatively, properties of equilibria with and without double-dipping are similar. In absolute terms, when borrowers are credit-constrained double-dipping equilibrium loans have to be more favorable to outweigh increased gains from default.","PeriodicalId":437258,"journal":{"name":"Corporate Finance: Capital Structure & Payout Policies","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125817679","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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