Dare to play with fire? Managerial ability and the use of short-term debt
Sign Up to like & getrecommendations! Published in 2021 at "Journal of Corporate Finance"
DOI: 10.1016/j.jcorpfin.2021.102065
Abstract: Abstract This study documents a positive relation between managerial ability and the use of short-term debt. This finding is robust to various specifications, including a difference-in-difference approach based on CEO turnovers. Able managers' preferences for… read more here.
Keywords: use short; debt; ability; short term ... See more keywords
Short-Term Debt and Bank Risk
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DOI: 10.1017/s0022109017001132
Abstract: The extant literature suggests that one of the main causes of the recent financial crisis was the excessive use of short-term debt by banks. Using a large sample of banks, we find that increases in… read more here.
Keywords: bank risk; risk; short term; term debt ... See more keywords
Self-Fulfilling Fire Sales: Fragility of Collateralized Short-Term Debt Markets
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DOI: 10.1093/rfs/hhaa115
Abstract: This paper shows that collateralised short-term debt, although privately optimal for reducing borrowers’ moral hazard, can cause fragility (multiple equilibria) when the collateral market is illiquid. A new form of coordination failure between borrowers’ ex… read more here.
Keywords: fragility; self fulfilling; term debt; short term ... See more keywords