Fiche du document
Auteurs
Date
27 juin 2020
Discipline
Type de document
Périmètre
Identifiants
- 2006.15309
- Economics Letters, Volume 181, August 2019, Pages 169-173
- doi: 10.1016/j.econlet.2019.05.003
Source
Collection
Organisation
Mots-clés
Economics - Theoretical EconomicsSujets proches
Standard of valueCiter ce document
Yuval Heller et al., « A closed-form solution to the risk-taking motivation of subordinated debtholders », arXiv - économie, ID : 10.1016/j.econlet.2019.05.003
Métriques
Partage / Export
Résumé
Black and Cox (1976) claim that the value of junior debt is increasing in asset risk when the firm's value is low. We show, using closed-form solution, that the junior debt's value is hump-shaped. This has interesting implications for the market-discipline role of banks' junior debt.