E ¢ cient Recapitalization

@inproceedings{Philippon2009EC,
  title={E ¢ cient Recapitalization},
  author={Thomas Philippon},
  year={2009}
}
We analyze government interventions to recapitalize a banking sector that restricts lending to …rms because of debt overhang. We …nd that the e¢ cient recapitalization program injects capital against preferred stock plus warrants and conditions implementation on su¢ cient bank participation. Preferred stock plus warrants reduces opportunistic participation by banks that do not require recapitalization, while conditional implementation limits free riding by banks that bene…t from lower credit… CONTINUE READING

From This Paper

Figures, tables, and topics from this paper.
1 Citations
58 References
Similar Papers

Citations

Publications citing this paper.

References

Publications referenced by this paper.
Showing 1-10 of 58 references

“Economists Have Abandoned Principle,”Wall Street Journal

  • O. Hart, L. Zingales
  • 2008
Highly Influential
5 Excerpts

“Liquidity, E¢ ciency and Bank Bailouts,”American

  • G. Gorton, L. Huang
  • Economic Review,
  • 2004
Highly Influential
4 Excerpts

“The Debt Hangover: Renegotiation with Non-contractible

  • S. Bhattacharya
  • Faure-Grimaud
  • 2001
Highly Influential
8 Excerpts

“Anatomy of Financial Distress: An Examination of Junk-Bond Issuers,”The

  • P. Asquith, R. Gertner, D. Scharfstein
  • Quarterly Journal of Economics,
  • 1994
Highly Influential
11 Excerpts

“Did Securitization Lead to Lax Screening? Evidence From Subprime Loans,”Quarterly

  • B. Keys, T. Mukherjee, A. Seru, V. Vig
  • Journal of Economics,
  • 2010
1 Excerpt

Similar Papers

Loading similar papers…