Results 261 to 270 of about 340,207 (304)
Some of the next articles are maybe not open access.
The covenant threshold in public and private debt
Banca Impresa Società, 2013A covenant is a particular clause in a firm's debt contract that restricts the firm'soptions and provides creditors with the right to enforce certain actions (e.g., earlyrepayment) if the covenant is violated. According to the agency theory of covenants,if the benefits of implementing a covenant exceed the costs, then lenders will includecovenants in ...
Bazzana, Flavio, Broccardo, Eleonora
openaire +2 more sources
Uncertainty and Debt Covenants
SSRN Electronic Journal, 2012I examine the use of financial covenants when contracting for debt under uncertainty. Uncertainty, in the context of this study, is a lack of information about the borrower's future value. I examine the implications of ex-ante uncertainty that is resolved by information received following loan initiation but prior to maturity. Under such circumstances,
openaire +1 more source
Debt Covenants, Agency Costs and Debt Maturity
SSRN Electronic Journal, 2009Corporate debt maturity is a concave function of financial leverage when the debt has restrictive asset-based covenants attached. This concavity kicks in earlier with increasing covenant tightness and is absent when firms have no restrictive asset-based covenants.
Jamie Alcock +2 more
openaire +1 more source
Debt Covenants and Accounting Manipulation
The Accounting Review, 2021ABSTRACT This paper studies the effects of allocating control rights to lenders via debt covenants when managers can sometimes misreport the accounting information on which the covenants are based. When contract renegotiation is exogenously prohibited, including a covenant in the contract is ex ante optimal because it increases both the ...
openaire +1 more source
The Costs of Debt Contracts and the Repeated Use of Debt Covenants
Asia-Pacific Journal of Financial Studies, 2009Abstract 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.
openaire +1 more source
Debt Covenants and Risk-Taking
SSRN Electronic Journal, 2015We examine a comprehensive set of debt contracts that have different types of covenants and performance pricing provisions to determine how these contractual features relate to borrowers’ risk-taking decisions. We predict and find that the relation between covenants and operating risk depends on the type of contractual provision: covenants that ...
Chris Armstrong +2 more
openaire +1 more source
The Structure of Bank Debt Covenants
SSRN Electronic Journal, 1999This paper identifies the sources of conflicts between debtholders and stockholders in commercial banks, considering the potential influence of bank deposit insurance and regulations restricting bank capital ratios, merger activities, and dividend payments.
Ervin L. Black, Susan E. Shevlin
openaire +1 more source
High-Yield Debt Covenants and Their Real Effects
Federal Reserve Bank of Dallas, Working Papers, 2021Abstract High-yield debt, including leveraged loans, typically features incurrence or ′′cov-lite'' financial covenants. Unlike traditional maintenance covenants, incurrence covenants preserve equity control rights but impose specific contractual restrictions on the borrower once certain financial thresholds are crossed.
Falk Bräuning +2 more
openaire +2 more sources
Debt Covenants and the Value of Commitment
SSRN Electronic Journal, 2020In a dynamic setup, the value of a capital structure policy for a firm depends on shareholders’ commitment. We analyze whether debt covenants can be com- mitment devices and their disciplinary effect on firm policies. While renegotiation following covenant violations allows for debt holders’ control and improves the ex post firm value, it weakens ...
Andrea Gamba, Lei Mao
openaire +1 more source