Authors

Steven L. Schwarcz

Rethinking Corporate Governance for a Bondholder Financed, Systemically Risky World

Abstract

This Article makes two arguments that, combined, demonstrate an important synergy: first, including bondholders in corporate governance could help to reduce systemic risk because bondholders are more risk averse than shareholders; second, corporate governance should include bondholders because bonds now dwarf equity as a source of corporate financing and bond prices are increasingly tied to firm performance.

Repository Citation

Steven L. Schwarcz, Rethinking Corporate Governance for a Bondholder Financed, Systemically Risky World, 58 Wm. & Mary L. Rev. 1335 (2017), https://scholarship.law.wm.edu/wmlr/vol58/iss4/5