CREDITOR RACES AND CONTINGENT CLAIMS

Authors
LAMBRECHT B PERRAUDIN W
Citation
B. Lambrecht et W. Perraudin, CREDITOR RACES AND CONTINGENT CLAIMS, European economic review, 40(3-5), 1996, pp. 897-907
Citations number
14
Categorie Soggetti
Economics
Journal title
European economic review → ACNP
ISSN journal
00142921
Volume
40
Issue
3-5
Year of publication
1996
Pages
897 - 907
Database
ISI
SICI code
0014-2921(1996)40:3-5<897:CRACC>2.0.ZU;2-C
Abstract
Recent research has begun the task of integrating contingent claims an alysis with modem corporate finance by incorporating strategic behavio ur in dynamic models of corporate security valuation. This paper repor ts on and illustrates these developments by presenting a simple pricin g model in which two debt-holders with incomplete information about ea ch other's type decide when to foreclose on a financially-distressed f irm.