19
NOV
2018
14:15
- 15:45
IWH Research Seminar
Debtholder Monitoring and Earnings Opacity
Who
Klaus Schäck
(University of Bristol)
Where
IWH conference room
We show that debtholder monitoring reduces earnings opacity. Using a natural experiment in the U.S. banking industry that subordinates junior creditors’ claims, we find that exposing junior creditors to greater losses in bankruptcy significantly reduces earnings opacity.
