Kahan, Marcel; Yermack, David - In: Journal of Law, Economics and Organization 14 (1998) 1, pp. 136-51
We investigate a puzzling empirical regularity: the near-total absence of restrictive covenants from publicly traded convertible bonds issued by U.S. companies. In a study of 192 recent debt issues, we find that an issuer's investment opportunities are negatively related to the presence of...