Corporate restructurings and the effect of ownership concentration on bond recovery rates : an empirical study of recovery rates in the Norwegian high yield bond market
Master thesis
Permanent lenke
http://hdl.handle.net/11250/2487889Utgivelsesdato
2017Metadata
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- Master Thesis [4378]
Sammendrag
This study examines the effect of ownership concentration on recovery rates for 112 defaulted
high yield bonds issued by Norwegian firms. We find evidence suggesting that concentrated
ownership in the hands of the firm’s largest owner negatively affects bond recovery for secured
bonds. The effect is insignficant for unsecured bonds. This suggests that large shareholders
reduce bond recovery rates by a transfer of value in the negotiation process during financial
reorganizations. Large shareholders have greater incentive to use their bargaining power in
negotiations, compared to small shareholders.