Announcement for a post-doctoral position in Turin
1 year Post-Doc fellowship at the ESOMAS Department - University of Torino
Supervisor: prof. Luca Regis, UniTO and Collegio Carlo Alberto (sites.google.com/view/lucaregis)
Project Title: "Leverage and interest rates"
Project's brief description:
The literature has so far provided mixed empirical evidence on the relation between leverage and interest rates and has highlighted its heterogeneity across firms. This project’s objective is to study the sensitivity of leverage to interest rates of a combination of firms in which a company can act as a bankruptcy-remote sponsor. Such sponsor (a parent company, a private equity fund) backs company debt when profitable but insolvent. We show, in a trade-off model, that the backed company may optimally increase debt when interest rates fall, while an identical company without a sponsor reduces it. Our aim is to extend the research both empirically, to test the predictions of the model and theoretically, to study the role of the length of the investment horizon and of the different organization of the combination. The implications of the research are relevant both on a positive level, because the channels through which interest rates and leverage are related are largely unknown, and from a regulators’ perspective, as we highlight a previously unexplored link between the level of interest rates and default risk.
Deadline for application: January 23rd 2023.
You can find the call and apply here: https://pica.cineca.it/unito/assegni-di-ricerca-unito-2022-vi/
For any further information, please contact Luca Regis (firstname.lastname@example.org).