Contingent Claims Analysis of Corporate Capital Structures: An Empirical Investigation

2019 ◽  
pp. 3-19
Author(s):  
E. Philip Jones ◽  
Scott P. Mason ◽  
Eric Rosenfeld
Keyword(s):  
Empirical Investigation ◽  
Contingent Claims ◽  
Claims Analysis ◽  
Corporate Capital ◽  
Contingent Claims Analysis

scholarly journals The Impact of Banking Competition on Firm Credit Risk and Leverage

SAGE Open ◽  
2021 ◽  
Vol 11 (4) ◽  
pp. 215824402110615
Author(s):  
Chengxiao Feng ◽  
Zhubo Li ◽  
Zhen Peng
Keyword(s):  
Default Risk ◽  
Credit Constraints ◽  
Contingent Claims ◽  
Claims Analysis ◽  
Banking Competition ◽  
Leverage Ratio ◽  
Contingent Claims Analysis ◽  
Credit Risks ◽  
Default Risks ◽  
The Impact

A firm’s default risk is closely related to its macrofinancial stability. As financial reform deepens, banking competition may ease firms’ credit constraints, encouraging them to increase their leverage and default risks. This study uses contingent claims analysis to examine firms’ asset–liability ratio and default distance. We find that companies have low leverage and low overall default risks. Moreover, a pro-cyclical effect exists between leverage and economic growth. As banking competition becomes more intense, the default risk decreases, but firms’ leverage ratio rises significantly. The impact is more prominent for highly leveraged firms. Our findings also indicate that utilizing the contingent claims analysis method to measure firms’ leverage and default risks provides more accurate results. Moreover, we provide empirical evidence of the impact of banking competition on firms’ leverage and credit risks. The results suggest that enhancing financial competition has a positive effect on easing credit constraints and reducing default risks.

scholarly journals A contingent claims analysis of optimal investment subsidy

2016 ◽  
Vol 73 ◽  
pp. 354-372 ◽  
Author(s):  
Norvald Instefjord ◽  
Vivekanand Nawosah ◽  
Pei Yang
Keyword(s):  
Optimal Investment ◽  
Contingent Claims ◽  
Claims Analysis ◽  
Contingent Claims Analysis ◽  
Investment Subsidy
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