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Are borrowers rewarded for repaying their loans? This paper investigates the consequences of covenant violations on subsequent loans to the same borrower using a hand-collected sample of US syndicated loans during the 1996 to 2010 period. We find that covenant violations have substantial...
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As machines replace humans in financial markets, how is informational efficiency impacted? We shed light on this issue … significantly improves informational efficiency and reduces the price drift following information events. We address identification …
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