Do Liquidation Values Affect Financial Contracts? Evidence from Commercial Loan Contracts and Zoning Regulation

By Efraim Benmelech, Mark J. Garmaise, Tobias J. Moskowitz. 2005

283 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/d4f896b7e83875fcde160371aa0b8d353a7a958f

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Citations in the corpus

Transaction Cost Economics: An Assessment of Empirical Research in the Social Sciences (2006, unknown): “In a similar TCE approach that examines debt financing, Benmelech et al. (2005) find interest rates on commercial property loan contracts increase with the nonredeployability of the assets.”
Competition and the Cost of Debt (2012, unknown): “…the level of creditor protection (Bae and Goyal, 2009; Qian and Strahan, 2008), bankruptcy codes (Davydenko and Franks, 2008), asset redeployability (Benmelech, Garmaise, and Moskowitz, 2005; Benmelech and Bergman, 2009), corporate governance (Chava, Livdan, and Purnanandam, 2009), accounting…”
Real Assets and Capital Structure (2013, unknown): “We model the endogeneity of tangibility as a function of industry characteristics, 3Relatedly, Benmelech, Garmaise, and Moskowitz (2005) find a positive relation between the liquidation value of commercial real estate and the size of mortgage contracts.”
Macroeconomics with Financial Frictions: A Survey (2012, unknown): “For example, Benmelech, Garmaise , and Moskowitz (2005) show that commercial property loans have lower interest rate, larger loan-to-value ratio and longer maturities and durations if the property has fewer zoning restrictions.”
Enlarging the Contracting Space: Collateral Menus, Access to Credit, and Economic Activity (2016, unknown): “phasis has been on variations in the value (Benmelech et al. (2005) and Gan (2007)), quantity supply (Campello and Giambona (2013)), or salability (Benmelech (2009)) of tangible assets that can be used as collateral.”
The Collateral Channel: How Real Estate Shocks Affect Corporate Investment (2012, background): “Benmelech, Garmaise, and Moskowitz (2005) document that more liquid (or more “redeployable”) pledgeable assets are financed with loans of longer maturities and durations.”
Asset Liquidity and Capital Structure (2009, unknown): “In turn, existing studies that examine the relation between asset liquidity and leverage (e.g., Alderson and Betker (1995), Kim (1998), and Benmelech, Garmaise, and Moskowitz (2005)) tend to limit their attention to narrow and specific samples of firms or assets.”
Financial Contracting: A Survey of Empirical Research and Future Directions (2009, background): “Benmelech, Garmaise, and Moskowitz (2005) focus on the redeployability of property as determined by commercial zoning regulation.”
Asset Salability and Debt Maturity: Evidence from Nineteenth-Century American Railroads (2009, background): “According to Wilner (1997): “The willingness of railroad owners to pay . . . [the expenses] . . . often 1550 Asset Salability and Debt Maturity necessitating acquisition of new locomotives, freight cars, and coaches to fit the horizontal distance between rails—was testimony to the strength of market”