How big is the debt overhang problem

By N. Moyen. 2007

130 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/08851ee2e6276b9f741c57ed72cd9eba0823b8a9

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Andrea Gamba
2. Alexander J. Triantis
3. Neng Wang
4. Suresh Sundaresan
5. Ilya A. Strebulaev
6. E. Casey
7. C. O’Toole
8. Xiaofei Zhao

In Strategy and Management

1. Suresh Sundaresan
2. Neng Wang
3. Ilya A. Strebulaev
4. E. Casey
5. C. O’Toole
6. Xiaofei Zhao
7. Alexander J. Triantis
8. Sergei Davydenko

Citations in the corpus

• A Market-Based Study of the Cost of Default (2012, methodology): “We do this by combining new data on the market values of debt and equity for defaulted firms with a novel estimation procedure that extends the event study methodology to events such as default announcements, which may be partially anticipated by investors long before they occur.”
• The Value of Financial Flexibility (2008, background): “6Debt agency problems have been examined in a dynamic setting by Mello and Parsons (1992), Childs, Mauer, and Ott (2005), Titman and Tsyplakov (2005) and Moyen (2007).”
• Dynamic Investment, Capital Structure, and Debt Overhang (2015, background): “This provides an explanation for why firms with more growth options may take a lower leverage (Smith and Watts (1992) and Rajan and Zingales (1995)). Moreover, our model predicts that the more attractive the firm’s future growth options are, the lower the firm’s current leverage is, ceteris paribus.”
• A Theory of Debt Maturity: The Long and Short of Debt Overhang (2012, unknown): “4 The interpretation of endogenous default given debt burden as “underinvestment” due to debt overhang, is mentioned in, for example, Lambrecht and Myers (2008) and He (2011).”
• Why Do Firms Use High Discount Rates (2016, unknown): “Thus, if financial constraints lead firms to use higher                                                              14 Mello and Parsons (1992), Parrino and Weisbach (1999), Hennessy (2004), and Moyen (2007) estimate the magnitude of these costs.”
• Leverage Dynamics over the Business Cycle (2016, unknown): “(2001), Moyen (2004), Childs, Mauer, and Ott (2005),Hennessy and Whited (2005), Hennessy and Whited (2007), Moyen (2007), Titman and Tsyplakov (2007), and Gamba and Triantis (2008)); by allowing for renegotiation (e.g. Mella-Barral and Perraudin (1997), Mella-Barral (1999), and Hege and…”
• Bank lending constraints, trade credit and alternative financing during the financial crisis: Evidence from European SMEs (2014, background): “17 For a review of the effects of debt overhang on investment see Hennessy (2004), Moyen (2007) and Hennessy et al. (2007).”