Short-term debt can reduce potential agency conflicts between managers and shareholders by exposing managers to more frequent monitoring by the credit market. Using an international dataset, we examine whether internal monitoring can substitute for external monitoring through the use of...

Short-term debt exposes firms to credit supply shocks and liquidity risk. Short-term debt can also reduce potential agency conflicts between managers and shareholders by exposing managers to more frequent monitoring by the market. This paper examines whether internal monitoring through...

We examine the relationship between the Governance Index (G-Index) and convertible bonduse by firms, specifically in the presence or absence of covenants. We find that the better theshareholder governance (lower G-Index) of firms, the more they are likely to issue convertibleinstead of straight...