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Design and Valuation of Debt Contracts

Review of Financial Studies, 1996
Abstract This article studies the design and valuation of debt contracts in a general dynamic setting under uncertainty. In doing so we draw together two strands of the finance literature that have developed significantly in recent years, but have done so in large part independently of one another.
Anderson, Ronald W, Sundaresan, Suresh
openaire   +3 more sources

A contraction for sovereign debt models

Journal of Economic Theory, 2019
zbMATH Open Web Interface contents unavailable due to conflicting licenses.
Mark Aguiar, Manuel Amador
openaire   +1 more source

Debt Contracting on Management

The Journal of Finance, 2020
ABSTRACTChange of management restrictions (CMRs) in loan contracts give lenders explicit ex ante control rights over managerial retention and selection. This paper shows that lenders use CMRs to mitigate risks arising from CEO turnover, especially those related to the loss of human capital and replacement uncertainty, thereby providing evidence that ...
BRIAN AKINS   +2 more
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Debt Contracting on Management

SSRN Electronic Journal, 2016
This paper shows that lenders can influence firms’ governance outside of payment and technical default states by exerting ex-ante control over managerial turnover via retention and selection decisions. Examining private loan agreements, we find 8.5% of firms have change of management restriction (CMR) clauses.
Brian Akins, Maclean Gaulin
openaire   +1 more source

The Role of Accounting Information in Optimal Debt Contracts with Informed Lenders

Accounting Review, 2018
We analyze the role of accounting information in debt contracting when the lender has private information that can assist in the borrower's investment decision.
M. Darrough, Mingcherng Deng
semanticscholar   +1 more source

Pension Deficits and the Design of Private Debt Contracts

Journal of Financial and Quantitative Analysis, 2018
We find a positive relation between the amount of pension deficits and the cost of bank loans. The effect of pension deficits on the cost of bank loans is driven by financial constraints, information-asymmetry problems, and higher pension-investment risk.
B. Balachandran, H. N. Duong, V. H. Vu
semanticscholar   +1 more source

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