演講者簡介 : Professor Felipe Varas received his PhD in Finance from Stanford University in 2013. He is currently an Associate Professor at Duke University. His research is in the areas of corporate finance, contract theory, and information economics.
演講摘要 : This paper studies how a borrower issues long- and short-term debt in response to shocks to the enterprise value. Our theory highlights the tradeoff between commitment and hedging. Shortterm debt protects creditors from future dilution and forces the borrower to reduce leverage after negative shocks. Long-term debt postpones default and allows the borrower time to recover after a downturn, thereby providing hedging in the upturn. Borrowers issue both types of debt when
they are far from default in the upturn. By contrast, distressed borrowers exclusively issue short-term debt. Our model generates novel implications for the dynamic adjustment of debt maturities.
