EconPapers    
Economics at your fingertips  
 

Debt Renegotiation and the Design of Financial Contracts

Christophe Godlewski ()

Journal of Financial Services Research, 2019, vol. 55, issue 2, No 5, 215 pages

Abstract: Abstract This study examines the design of financial contracts after renegotiations. It focuses on the degree of renegotiation as measured by the number of amendments to the contract. I find that the design of renegotiated financial contracts is not homogenous, although the most frequent amendments are to the loan’s amount and maturity. I show that the number of amendments increases with longer maturities. Collateral and bank reputation have the opposite effect. Creditors friendly environments with fewer renegotiation frictions increase the number of amendments. Overall, contractual, organizational, and legal features have a significant influence on the design of financial contracts after renegotiation.

Keywords: Financial contracts design; Bank loans; Debt renegotiation (search for similar items in EconPapers)
JEL-codes: G10 G21 G24 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10693-019-00311-x Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Debt renegotiation and the design of financial contracts (2016) Downloads
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:kap:jfsres:v:55:y:2019:i:2:d:10.1007_s10693-019-00311-x

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10693

DOI: 10.1007/s10693-019-00311-x

Access Statistics for this article

Journal of Financial Services Research is currently edited by Haluk Unal

More articles in Journal of Financial Services Research from Springer, Western Finance Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2020-09-04
Handle: RePEc:kap:jfsres:v:55:y:2019:i:2:d:10.1007_s10693-019-00311-x