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that creditors acquire private information about borrowers via information covenants after a contract is in place. This in …
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and interpretability of tests of lenders' use of the information for loan contract monitoring. To fill this gap, we … lenders' loan contract monitoring; (2) the covenants are positively associated with the frequency of loan contract amendments …
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costly to acquire and reduces the value of the loan contract to the borrower because it passes more of the continuation right …
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I examine whether rating agencies cater to borrowers with rating-based performance-priced loan contracts (PPrating firms). I use data from Moody's Financial Metrics on its quantitative adjustments for off-balance-sheet debt and qualitative adjustments for soft factors. In the cross-section and...
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