全球智库信息集成服务系统(G2TT): Strategic Judgment Proofing

G2TT

来源类型	Working Paper
规范类型	报告
DOI	10.3386/w14183
来源ID	Working Paper 14183
	Strategic Judgment Proofing
	Yeon-Koo Che; Kathryn E. Spier
发表日期	2008-07-18
出版年	2008
语种	英语
摘要	A liquidity-constrained entrepreneur needs to raise capital to finance a business activity that may cause injuries to third parties -- the tort victims. Taking the level of borrowing as fixed, the entrepreneur finances the activity with senior (secured) debt in order to shield assets from the tort victims in bankruptcy. Interestingly, senior debt serves the interests of society more broadly: it creates better incentives for the entrepreneur to take precautions than either junior debt or outside equity. Unfortunately, the entrepreneur will raise a socially excessive amount of senior debt. Giving tort victims priority over senior debtholders in bankruptcy prevents over-leveraging but leads to suboptimal incentives. Lender liability exacerbates the incentive problem even further. A Limited Seniority Rule, where the firm may issue senior debt up to an exogenous limit after which any further borrowing is treated as junior to the tort claim, dominates these alternatives. Shareholder liability, mandatory liability insurance and punitive damages are also discussed.
主题	Microeconomics ; Households and Firms ; Welfare and Collective Choice ; Financial Economics ; Corporate Finance ; Other ; Law and Economics
URL	https://www.nber.org/papers/w14183
来源智库	National Bureau of Economic Research (United States)
引用统计
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/571857
推荐引用方式 GB/T 7714	Yeon-Koo Che,Kathryn E. Spier. Strategic Judgment Proofing. 2008.

条目包含的文件
文件名称/大小	资源类型	版本类型	开放类型	使用许可
w14183.pdf（270KB）	智库出版物		限制开放	CC BY-NC-SA	浏览