Christophe Godlewski, enseignant-chercheur à l'EM Strasbourg, a récemment publié un article dans le "Journal of Corporate Finance".
Christophe Godlewski (LaRGE, EM Strasbourg) a écrit, pour l'édition de juin, un article intitulé "How legal and institutional environmentsshape the private debt renegotiation process?".
I investigate how legal and institutional conditions around loan origination influence a private debt renegotiation process. Using a largesample of 15,000 loans on the European credit market, I apply a sequential logit model to consider the renegotiation likelihood, theconditional probability of multiple renegotiation rounds or multiple amended terms, and the renegotiation outcomes conditional on specificloan amendments. I find that legal systems with stronger protection of creditors control rights have a positive influence on renegotiationlikelihood and favorable outcomes on amendments to amount or maturity. Stronger legal protection reduces renegotiation likelihood whencreditors face potential strategic default by shareholders. The legal and institutional environment has a significant effect on how the initialdesign of the financial contract impacts the renegotiation process.
The Journal of Corporate Finance aims to publish high quality, original manuscripts that analyze issues related to corporate finance.Contributions can be of a theoretical, empirical, or clinical nature. Topical areas of interest include, but are not limited to: financialstructure, payout policies, corporate restructuring, financial contracts, corporate governance arrangements, the economics oforganizations, the influence of legal structures, and international financial management. Papers that apply asset pricing and microstructureanalysis to corporate finance issues are also welcome.