2024 Firm-level political risk and debt choice

Firm-level political risk and debt choice

Author: moha

August undefined, 2024

WebA) the required rate of return for all of a firm's capital investment projects. B) the required rate of return for a firm's average risk projects. C) not applicable for use by MNE. D) equal to 13%. B 8) The capital asset pricing model (CAPM) is an approach: A) to determine the price of equity capital. WebAug 6, 2024 · In a recent study, Ghoul et al. (2024) suggest that during the period of high economic policy uncertainty (EPU), investors are more likely to scrutinize financial information of firms with higher...

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Web23 hours ago · Republicans, led by Speaker McCarthy, above, are starting to draw up a plan to raise the debt ceiling until May 2024 in exchange for reducing spending to FY 2024 levels Rep. Garrett Graves, R-La ... WebHassan et al. [2024] suggests that substantial part of political risk plays out at the firm-level. We use their measure of political risk to show that borrower-level political risk is reflected in pricing and liquidity of public debt, in the cost of private debt, and in credit default swap spreads and recovery rates. We also thomas westcott plymouth

Political Uncertainty and Bank Loan Contracting Request PDF

WebOct 1, 2000 · Defining "Political Risk". The exercise of political power causes political risks in international business, and this power can affect a firm's value. Learn the … WebAbstract We examine the effect of firm-level political risk on debt choices and find: (i) firms with higher political risk display a preference for private debt over public debt; (ii) … WebNov 27, 2024 · Our difference-in-differences approach shows that exogenous increases in information asymmetry lead firms to substitute away from equity and public debt toward … thomas westerlinck

GOP could raise debt limit until May 2024 if spending cut to

Collateral and the Choice Between Bank Debt and Public Debt

WebJun 12, 2024 · We take advantage of a new measure of political risk (Hassan et al. (2024)) to study the effects of firm level political risk on private debt markets. First, we use … WebAbstract We examine the effect of firm-level political risk on debt choices and find: (i) firms with higher political risk display a preference for private debt over public debt; (ii) … thomas westermann ecbWebFeb 1, 2024 · Firm-level political risk and debt choice 2024, Journal of Corporate Finance Show abstract Effects of subsidy and tax rebate policies on green firm research and development efficiency in China 2024, Energy Show abstract Government R&D support and firms’ access to external financing: funding effects, certification effects, or both? uk numbing cream

"WebSep 1, 2024 · Consistent with a governance mechanism substitution effect, we find that an exogenous increase (decrease) in governance pressure from the product (takeover) market has a significant negative... " - Firm-level political risk and debt choice

Firm-level political risk and debt choice

WebNov 27, 2024 · Our difference-in-differences approach shows that exogenous increases in information asymmetry lead firms to substitute away from equity and public debt toward bank debt. Firms with higher... WebSep 1, 2024 · However, firm-level political risk is positively related to debt specialisation, suggesting that firms are more inclined to adopt fewer debt types when they face high …

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WebAug 1, 2024 · Models of political risk predict that increases in political uncertainty cause stock prices to fall, especially for politically sensitive firms. We use the event of the Bo Xilai political scandal in 2012 in China as an exogenous shock to identify the impact of political uncertainty on asset prices.

WebNov 1, 2024 · Abstract We examine the effect of firm-level political risk on debt choices and find: (i) firms with higher political risk display a preference for private debt over … WebAbstract We examine the effect of firm-level political risk on debt choices and find: (i) firms with higher political risk display a preference for private debt over public debt; (ii) the magnitude of this preference varies with the aggregate policy uncertainty; (iii) politically risky firms indeed receive less favorable terms in the bond market.

WebSep 19, 2024 · Relationship and outside loans have similar interest rates during distress and even 2 years prior to distress. Relative to outside loans in distress, relationship loans in distress have lower maturity. The fraction of bank lending given by relationship banks reduces during borrower distress. WebApr 11, 2024 · All sovereign debt restructurings risk undershooting (providing less debt relief than is needed to restore the country to long-term sustainability) or overshooting (extracting more debt relief from creditors than turns out to have actually been necessary).. Of these, undershooting will be the greater risk in sovereign debt workouts in the post …

WebFeb 1, 2011 · However, firm-level political risk is positively related to debt specialisation, suggesting that firms are more inclined to adopt fewer debt types when they face high political risk. Further analysis reveals that firms with high political risk are associated with a faster speed of adjustment to target than those with low political risk.

WebAug 1, 2024 · As indicated by Table 5, the negative and significant coefficient of EPU in the Volume equation suggests that an appetite for debt financing does not lead to higher issuance volume. ... Raising... thomas westermann ahausWebApr 15, 2015 · This paper tests how collateral value affects a firm’s choice between bank debt and public debt by considering the exogenous variation in the market value of a … thomas westermann hkaWebOct 12, 2024 · Firms pay 7 basis points (bps) more on loans originated when their lenders are undergoing an election relative to when their lenders are not undergoing an election. Lenders from less financially developed countries are more likely to pass political uncertainty costs to borrowers. uk nurseries selling apple cultivar ben\u0027s redWebMay 1, 2024 · We examine the effect of firm-level political risk on debt choices and find: (i) firms with higher political risk display a preference for private debt over public debt; (ii) the magnitude of this ... uk nursery start ageWebFeb 1, 2024 · Firm-specific political risk represents the sensitivity of a firm's operation to government policy uncertainty. In this study, we explore how individual firms' political … uk number starts withWebAug 26, 2024 · Firms exposed to political risk retrench hiring and investment and actively lobby and donate to politicians. These results continue to hold after controlling for news about the mean (as opposed to the variance) of political shocks. thomas westervelt new orleansWebWe examine the effect of firm-level political risk on debt markets. While prior research relies mainly on economy-wide proxies for political risk (such as the economic policy … uk number to international