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Title:Essays on Corporate Finance and Financial Intermediation
Author(s):Han, Joong Ho
Doctoral Committee Chair(s):George Pennacchi
Department / Program:Finance
Degree Granting Institution:University of Illinois at Urbana-Champaign
Subject(s):Business Administration, Banking
Abstract:In the last essay, I study how liquidation values can affect the determination of debt maturity. I document the first empirical evidence supporting the claim that higher liquidation value can indeed decrease debt maturity. I document that maturity for cash lending, which provides cash usable at the borrower's discretion, decreases with liquidation value of a borrowing firm's total assets. On the other hand, the maturity for capital goods lending, which limits a debtor's ability to transform assets financed, decreases with industry-level market demand for fixed assets. These findings are consistent with the Myers and Rajan (1998)'s prediction that, when liquidation value is high, shortening debt maturity is optimal to avoid asset diversion against the creditors' interest.
Issue Date:2005
Description:84 p.
Thesis (Ph.D.)--University of Illinois at Urbana-Champaign, 2005.
Other Identifier(s):(MiAaPQ)AAI3199011
Date Available in IDEALS:2015-09-28
Date Deposited:2005

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