We obtain the benchmark interest rates reported in Table II from Bloomberg as of the trade dates. The risk-free rate is the maturity matched (through linear interpolation) interest rate on Treasury bonds, which averages 1.95% over our sample period.
We linearly interpolate the zero-curve to identify the maturity matched risk-free rates as of the trade dates.
While assigning the firm identifiers, we aggregate an issuer under its parent only if the issuer and the parent are associated prior to the trade date and the parent is also the guarantor for the bond.
(4) We drop bonds with remaining maturities less than one year or more than 30 years as of the trade date to reduce the noise in spread calculations.
We obtain financial variables from Compustat using the most recent quarterly report released prior to a trade date. The mean (median) book value of assets for our sample firms is $33.45 billion ($16.30 billion).
To construct our instrument, we use a five-year window prior to the trade date to identify the firm's bond underwriters from Bloomberg and its lenders from the Dealscan database.
Following the practice in the literature (Gilson, John, and Lang, 1990; Acharya, Bharath, and Srinivasan, 2007), we define distressed industries at the three-digit standard industrial classification (SIC) industry code level as those in which the median firm's stock return is less than -30% during the year preceding the trade date. Columns (4) and (5) in Table VI report the coefficient estimates on the interactions of CDS insurance with the tangibility and industry distress variables, respectively.
The EU's agreement with Ukraine on textile trade dates
from 1993, and allows for annual reviews of the scope of double-checking requirements.The European Commission has agreed, at the request of the Moldovan government, to transfer funds within its TACIS aid programme.