The Impact of the Introduction of Uniform European Collective Action Clauses on European Government Bonds as a Regulatory Result of the European Sovereign Debt Crisis

Nicoletta Layher and Eyden Samunderu
Additional contact information
Nicoletta Layher: Technik Museum Sinsheim Speyer, Eberhard-Layher Str. 2, 74889 Sinsheim, Germany
Eyden Samunderu: Department of Strategic Management, International School of Management (ISM), Otto Hahn-Str. 19, 44227 Dortmund, Germany

JRFM, 2020, vol. 14, issue 1, 1-32

Abstract: This paper conducts an empirical study on the inclusion of uniform European Collective Action Clauses (CACs) in sovereign bond contracts issued from member states of the European Union, introduced as a regulatory result of the European sovereign debt crisis. The study focuses on the reaction of sovereign bond yields from European Union member states with the inclusion of the new regulation in the European Union. A two-stage least squares regression analysis is adopted in order to determine the extent of impact effects of CACs on member states sovereign bond yields. Evidence is found that CACs in the European Union are priced on financial markets and that sovereign bond yields do respond to the inclusion of uniform CACs in the European Union.

Keywords: collective action clauses; sovereign debt; bond yields (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1911-8074/14/1/1/pdf (application/pdf)
https://www.mdpi.com/1911-8074/14/1/1/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jjrfmx:v:14:y:2020:i:1:p:1-:d:466569

Access Statistics for this article

JRFM is currently edited by Ms. Chelthy Cheng

More articles in JRFM from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().