TRR 266/TAF Research Seminar
On 15 June 2021, Professor Dr. Helena Isidro (ISCTE-IUL Business School, Portugal) presented at the TRR 266/TAF Research Seminar a paper titled "Debt Contracting After Bankruptcy". This paper is joint work with Ivana Raonic (University of London, UK).
The paper examines changes in the covenant structure of syndicated loans issued before and after a US firm’s bankruptcy. The authors find a substantial increase in the use of performance covenants relative to capital covenants in loans agreed in the year immediately after the bankruptcy but it does not persist in subsequent years. The paper contributes to bankruptcy literature about the rise in creditor control during bankruptcy, and sheds further insights on the role of financial covenants in debt contracting.
Helena Isidro is Professor of Accounting at ISCTE-IUL Business School in Lisbon (Portugal). In 2005 she obtained her doctoral degree in accounting and finance at the Lancaster University (UK). Prior to her position at IUL, she worked at Cass Business School (UK) and she held visiting positions at Sydney University (Australia) and the University of Miami (US). In addition, she is engaged in international organizations such as the academic research network of EFRAG (European Financial Reporting Advisory Group) and she serves as a member of the management committee of the EAA (European Accounting Association).
Main research areas of Helena Isidro include international financial reporting, equity valuation, voluntary disclosure and capital markets. She has received several prestigious awards for her research such as the best European PhD thesis in Management.