TY  - RPRT
U1  - Arbeitspapier
A1  - Lahmann, Alexander
A1  - Schwetzler, Bernhard
T1  - The impact of credit rating and frequent refinancing on firm value
N2  - Rating affects corporate credit costs and leverage choices. Therefore, we develop a corporate valuation model where the choice of leverage is consistent with the implied cost of debt of the rating class. We explicitly model the trigger, the consequences, and the analytical probability of bankruptcy. Further, we develop a financing policy where the firm refinances with a predefined frequency. To conclude, we develop value implications of rating and financing policy which are in line with the trade-off theory in capital structure theory.
Y1  - 2012
N1  - Available at SSRN (Social Science Research Network), Link see below
ER  -