Disruption and Credit Markets
We show that over the past half century innovative disruptions were central to understanding corporate defaults. In a given year, industries experiencing abnormally high VC or IPO activity subsequently see higher default rates, higher segment exits by conglomerates, and higher yields on bonds issued by the firms in these industries. Overall, we find that disruption is a broad phenomenon, negatively affecting incumbent firms across the spectrum of age, valuation, and levers, with the exception of very large and low-leverage firms, which confirms our central hypothesis.
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Copy CitationBo Becker and Victoria Ivashina, "Disruption and Credit Markets," NBER Working Paper 29890 (2022), https://doi.org/10.3386/w29890.Download Citation
Published Versions
BO BECKER & VICTORIA IVASHINA, 2023. "Disruption and Credit Markets," The Journal of Finance, vol 78(1), pages 105-139. citation courtesy of 
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