borrowers likely involve fewer monitoring tools and weaker control rights. We evaluate these explanations of cov-lite contract …

that creditors acquire private information about borrowers via information covenants after a contract is in place. This in …

use of default clauses and their restrictiveness within the same type of lending contract but also across loans and bonds …

contract renegotiations. I study whether the demand for monitoring determines the renegotiation intensity, defined as either … contract renegotiation trades off the benefits of enhanced monitoring with the costs of suboptimal creditor intervention …

This paper derives the optimal financial contract when a borrowing entrepreneur can evade taxes in a model of costly … standard debt contracts are not optimal when tax evasion is possible. Instead, the optimal contract is debt-like only for very …

This paper examines the relationship between debt contracts and state contract law. We first develop an index to … evaluate whether each state's law is favorable or unfavorable to lenders. We then analyze how the contract terms, the frequency … most likely to be used when the contract is governed by law that is favorable to debtors, and that out-of-state borrowers …

's credit rating improves and CDS spread declines after LTAP grants, suggesting that LTAPs help reduce firms' credit risk …

effect of renegotiation costs on initial contract terms. TD9599 materially reduced the tax burden of renegotiating U … setting, we examine the implications of incomplete contracting theory for debt contract design. Consistent with incomplete …