Language and private debt renegotiation

Author:

Godlewski Christophe J.1ORCID

Affiliation:

1. Faculty of Law and Business & EM Strasbourg Business School University of Strasbourg Strasbourg France

Abstract

AbstractWe study how language affects private debt renegotiation. We predict that stronger future time reference (FTR) languages alter the importance of renegotiation risk by lowering the perceived value of loan renegotiation. We test this hypothesis on a sample of 6500 loans issued to European firms between 1999 and 2017. We find that the use of a stronger FTR language decreases the likelihood of renegotiation and the number of renegotiation rounds. These findings are robust to several FTR proxies, various specifications including loan, borrower, and country‐level variables, and potential mitigation effects from specific loan, country, or time effects. They suggest that linguistic structure influences the renegotiation process of private debt contracts.

Publisher

Wiley

Subject

Economics and Econometrics,Finance,Accounting

Reference69 articles.

1. An incomplete contracts approach to financial contracting;Aghion P.;Review of Economic Studies,1992

2. Does trust matter for the cost of bank loans?;Álvarez‐Botas C.;Journal of Corporate Finance,2021

3. Languages and future‐oriented economic behavior—Experimental evidence for causal effects;Ayres I.;Proceedings of the National Academy of Sciences,2023

4. Creditor rights, enforcement, and bank loans;Bae K.;Journal of Finance,2009

5. Mind the gap: The difference between U.S. and European loan rates;Berg T.;The Review of Financial Studies,2017

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3