Results 281 to 290 of about 340,207 (304)

Debt Covenants and the Speed of Capital Structure Adjustment

SSRN Electronic Journal, 2017
Abstract This paper examines the impact of debt covenants on the speed of capital structure adjustment. Overall, we find that covenants lower the speed of adjustment by 10–13%, relative to the speed of adjustment of firms without covenants. The speed of adjustment is significantly lower, by 40–50%, for firms with the most intense covenant provisions.
Devos, Erik, Rahman, Shofiqur, Tsang, Desmond   +2 more
openaire   +2 more sources

Debt Covenants and Accounting Conservatism

Journal of Accounting Research, 2010
ABSTRACTUsing a sample of over 5,000 debt issues, I test whether firms with more extensive use of covenants in their public debt contracts exhibit timelier recognition of economic losses in accounting earnings. Covenants govern the transfer of decision‐making and control rights from shareholders to bondholders when a company approaches financial ...
openaire   +1 more source

The Role and Structure of Debt Covenants

SSRN Electronic Journal, 2009
Through this paper, I discuss the existing research on the topic of debt and covenants and I intend to answer the following questions: i) Why is debt considered a governance mechanism?; ii) Are debt covenants supporting debt as an incentive mechanism?; iii) How and in what conditions can debt covenants mitigate the stockholder-bondholder conflict?
openaire   +1 more source

Debt covenant violation, competition and cost of new debt

Australian Journal of Management, 2018
This article empirically shows that the cost of new debt is higher for firms that commit covenant violations. Using a proxy for product market competition to capture exogenous changes to a firm’s competitive environment, I find that the cost is systematically higher for firms that operate in competitive markets.
openaire   +1 more source

Asset Maturity, Debt Covenants, and Debt Maturity Choice

Financial Review, 2000
AbstractThe existing research on debt‐maturity under asymmetric information has focused on the impact of differential information regarding asset quality on the debt maturity decision. This research has generally indicated the optimality of short‐term debt financing as a vehicle of mitigating the adverse selection problem. In this paper, I consider the
openaire   +1 more source

Debt Covenants after Bankruptcy

SSRN Electronic Journal, 2023
Helena Isidro, Ivana Raonic
openaire   +1 more source

Do Borrowers Intentionally Avoid Covenant Violations? A Reexamination of the Debt Covenant Hypothesis

Journal of Accounting Research, 2022
Peter Demerjian
exaly  

What's my style? Supply-side determinants of debt covenant inclusion

Journal of Business Finance and Accounting, 2022
Derrald Stice, Zhiming Ma
exaly  

Managerial Optimism and Debt Covenants

Journal of Accounting Research, 2022
Jakob Infuehr, Volker Laux
exaly  

Earnings Management to Avoid Debt Covenant Violations and Future Performance

European Accounting Review, 2022
Scott Dyreng, Steve Hillegeist, Fernando Penalva   +2 more
exaly