Does performance-sensitive debt mitigate debt overhang?

DOI10.1016/j.jedc.2021.104203zbMath1475.91394MaRDI QIDQ2246777

Alejandro Rivera, Benoît Chevalier-Roignant, Alain Bensoussan

Publication date: 16 November 2021

Published in: Journal of Economic Dynamics \& Control (Search for Journal in Brave)

zbMATH Keywords

real optionsdebt overhangcapital structureperformance-sensitive debt

Mathematics Subject Classification ID

Corporate finance (dividends, real options, etc.) (91G50)

Related Items (2)

Valuing real options with endogenous payoff ⋮ Real Options Problem with Nonsmooth Obstacle

Cites Work

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• How big is the debt overhang problem?
• Real options in operations research: a review
• Investment and capacity choice under uncertain demand
• Irreversible investment and Knightian uncertainty
• Investment timing, debt structure, and financing constraints
• Inside Debt*
• Endogenous Liquidity and Defaultable Bonds
• Sequential Capacity Expansion Options
• A Dynamic Model of Optimal Capital Structure

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