Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
8954583 | Finance Research Letters | 2018 | 8 Pages |
Abstract
We empirically test the theoretical prediction of the impact of debt market liquidity on correlated default risk. Confirming the theory, our results indicate that the lower debt market liquidity, leads to an economically significant increase in the correlated default risk. Also consistent with theory, we show that this effect is more pronounced for short-term debt.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Siamak Javadi, Mohsen Mollagholamali,