# kaal:claim:1998455-014

**Claim.** Contingent capital by itself, without additional measures and supplemental corporate governance improvements, may not prevent firm failure; its real potential unfolds only when it supplements other corporate governance improvements.

**Type.** failure  **Support.** argued

**Holds when.**

- where contingent capital is deployed as a standalone regulatory tool

**Source quote.**

> In sum, contingent capital without additional measures and supplemental corporate governance improvements may not pre- vent firm failure.115 The real potential of contingent capital could unfold if it would be used to supplement other corporate govern- ance improvements.

**From.** Wulf A. Kaal, *Initial Reflections on the Possible Application of Contingent Capital in Corporate Governance* (2012), III.B. Unresolved Design Issues, page 24

**Cite as.** Wulf A. Kaal, Initial Reflections on the Possible Application of Contingent Capital in Corporate Governance (2012). SSRN: https://ssrn.com/abstract=1998455

**Verify.** sha256 of source PDF `1c16ff10a284469ba15fb7ba5523449b917388ee692d9b394f9e8c094544e32c` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202012%20-%20Initial%20Reflections%20on%20the%20Possible%20Application%20of%20Contingent%20Capital%20in%20Corporate%20Governance.pdf

**Failure mode.** standalone-contingent-capital-insufficiency  (family: systemic-risk-transmission)

**Topics.** contingent-capital, governance-design, corporate-governance

**Keywords.** contingent-capital, corporate-governance, firm-failure, complementarity, failure-modes

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