Do liquidation values affect financial contracts?
Subtitle: evidence from commercial loan contracts and zoning regulation
By: Efraim Benmelech, Mark J. Garmaise, Tobias Moskowitz.
Contributors: Garmaise, Mark J.; Moskowitz, Tobias J. 1971-.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 11004; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 11004.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "We examine the impact of asset liquidation value on debt contracting using a unique set of commercial property non-recourse loan contracts.  We employ commercial zoning regulation to capture the flexibility of a property's permitted uses as a measure of an asset's redeployability or value in its next best use.  Within a census tract, more redeployable assets receive larger loans with longer maturities and durations, lower interest rates, and fewer creditors, controlling for the current value of the property, its type, and neighborhood.  These results are consistent with incomplete contracting and transaction cost theories of liquidation value and financial structure"--National Bureau of Economic Research web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 1/3/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.