We explore a model in which agents enter into a contract but are uncertain about how a judge will enforce it. The judge can consider a wide range of evidence, or instead, use a rule-based method of judgment that relies on limited information. We focus on the following tradeoff: Considering a...

We find that corporate loan contracts frequently concentrate control rights with a subset of lenders. Despite the rise in term loans without financial covenants—so-called covenant-lite loans—borrowing firms' revolving lines of credit almost always retain traditional financial covenants. This...

In this paper we examine a model of the optimal financial claim for a bank in a world where a borrowing firm s uninformed stakeholders depend upon the bank for truthful information about the firm s evolving financial condition. In particular, stakeholders rely upon the bank to reveal whether the...

This is the Online Appendix to accompany “Concentration of Control Rights in Leveraged Loan Syndicates” by Mitchell Berlin, Greg Nini, and Edison Yu. It includes material that we deem as supplementary to the primary analysis included in the main document

Should regulatory bank examinations be made public? Regulators have argued that the confidentiality of the examination process promotes frank exchanges between bankers and examiners and that public disclosure of examination results could have a chilling effect. I examine the tradeoffs in a world...