Corporate Law and Corporate Governance

Optimal Debt Structure and the Number of Creditors

Patrick Bolton and David S. Scharfstein

Year
1996
Venue
Journal of Political Economy
Level
Advanced
Journal of Political Economy cover
Archive-designed coverJournal of Political Economy

Summary

Models debt structure as a tradeoff between deterring strategic default and limiting inefficient liquidation. The analysis shows how creditor number and claim structure can change bargaining and control in financial distress.

Citation

Patrick Bolton and David S. Scharfstein. "Optimal Debt Structure and the Number of Creditors." Journal of Political Economy, 1996.

DOI: 10.1086/262030

BibTeX

@article{Bolton1996Optimal,
  title = {Optimal Debt Structure and the Number of Creditors},
  author = {Patrick Bolton and David S. Scharfstein},
  year = {1996},
  journal = {Journal of Political Economy},
  doi = {10.1086/262030},
  url = {https://doi.org/10.1086/262030}
}
Original source: University of Chicago Press DOI

Related Concepts