The Leverage Ratchet Effect

1 January 2013

preprint
Published by Elsevier in SSRN Electronic Journal

https://doi.org/10.2139/ssrn.2304969

Abstract

Shareholder-creditor conflicts can create leverage ratchet effects, resulting in inefficient capital structures. Once debt is in place, shareholders may ineffic

Keywords

RECAPITALIZATION
LEVERAGE
CAPITAL STRUCTURE
WORKING PAPER
SYSTEMIC RISK

All Related Versions

Version 1, 2013-01-01, RePEc (Unconfirmed version)
Version 1, 2015-01-01, RePEc (Unconfirmed version)
Version 1, 2013-01-01, RePEc (Unconfirmed version)

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