Present studies show one twin holders-that’s, organizations one to while doing so keep equity and you will loans of the same enterprise-internalize the brand new shareholder-creditor conflict and lead to bonus positioning between the two events (Jiang ainsi que al. Although not, mitigation of the stockholder-collector argument happens at the expense of opening another type of disagreement among creditors. Loan providers holding high security stakes during the borrower firms have very other bonuses than just creditors holding very small or no equity limits. This disagreement ranging from loan providers is also for this reason apply to old boyfriend-ante loans employing and you will old boyfriend-post obligations renegotiation. Read more
