Chava, Sudheer; Kumar, Praveen; Warga, Arthur - In: Review of Financial Studies 23 (2010) 3, pp. 1120-1148
Based on an analysis of the agency risk for bondholders from managerial entrenchment and fraud, we derive and test refutable hypotheses about the influence of managerial agency risk on bond covenants, using a comprehensive database of corporate bonds from the 1993--2007 period. Managerial...