Results 191 to 200 of about 1,613,471 (241)

Seniority and maturity of debt contracts

Journal of Financial Economics, 1993
Abstract This paper provides a model of how borrowers with private information about their credit prospects choose seniority and maturity of debt. Increased short-term debt leads lenders to liquidate too often. It also increases the sensitivity of financing costs to new information, although better-than-average borrowers desire information ...
Douglas W. Diamond
semanticscholar   +2 more sources

The Costs of Debt Contracts and the Repeated Use of Debt Covenants

Asia-Pacific Journal of Financial Studies, 2009
Abstract I examine the tendency to repeatedly use the same financial covenant in debt contracts and the economic determinants of such repeated use. Using the Dealscan database, I find a tendency to repeatedly use the same financial covenant.
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Blockholder Board Representation and Debt Contracting

Journal of Banking & Finance, 2019
We examine the impact of blockholder board representation on a borrower’s bank loan contract terms and find it is associated with lower spreads and fewer negative covenants. When examining the potential channels behind the relationship, we find that blockholder-directors who take dedicated monitoring roles, as opposed to the short-term or ...
Blair B. Marquardt, Juan Manuel Sanchez
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Performance pricing in bank debt contracts

Journal of Accounting and Economics, 2004
Performance pricing links the interest rate spread on bank debt to a borrower's performance via two options. It gives borrowers an option to reduce interest rates if credit quality improves, and it gives lenders an option to receive higher interest rates if credit quality deteriorates.
Paul Asquith, Anne L. Beatty, Joseph Peter Weber   +2 more
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Location and Debt Contracts

2011
How do distance constraints faced by lenders in monitoring debt agreements affect the contracting role of debt covenants? Theories based on costly state verification suggest a diminishing ability of a lender to monitor borrowers as they are located farther away from the lender.
Arnt Verriest, Stephan Hollander
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Determinants of the Usefulness of Inside Debt in Debt Contract Design

SSRN Electronic Journal, 2020
Evidence shows that managers’ debt-like compensation (i.e., inside debt) aligns their incentives with lenders’, reducing the agency cost of debt. We examine how changes in the contracting environment affect the use of inside debt in debt contracting.
Peter R. Demerjian, Paige Harrington Patrick, Frances M. Tice   +2 more
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Debt and Formal Contracts

2003
exaly   +2 more sources

Debt on Informal Contracts

1987
exaly   +2 more sources

Mood effects in optimal debt contracts

Journal of Behavioral and Experimental Finance, 2012
The impact of strong emotions or mood on decision making and risk taking is well recognized in behavioral economics and finance. Yet, and in spite of the immense interest, no study, so far, has provided any comprehensive evidence on the impact of such emotions on financial contracts and particularly on debt contracts.
Nicholas Apergis, Dimitris Voliotis
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Debt-Contingent Inflation Contracts and Targets

Journal of Economic Dynamics and Control, 2000
This paper analyzes fiscal and monetary policy interaction in a simple policy game with debt and output shocks. Seigniorage provides revenue for the government but results in inflation-bias. We analyze three mechanism designed to eliminate some or all of the biases in monetary policy: an inflation performance contract, inflation target (both contingent
openaire   +2 more sources