the choice and use of financial covenants in private and public debt contracts, as well as the role that risk management … covenants linked to performance. Risk management attenuates the effect of uncertainty on the inclusion of financial covenants … while firms characteristics especially related to default risk intensify the effect. In bond contracts, uncertainty …

An important theoretical literature motivates collateral as a mechanism that mitigates adverse selection, credit … incidence of collateral. We exploit exogenous variation in lender information related to the adoption of an information … technology that reduces ex ante private information, and compare collateral outcomes before and after adoption. Our results are …

An important theoretical literature motivates collateral as a mechanism that mitigates adverse selection, credit … incidence of collateral. We exploit exogenous variation in lender information related to the adoption of an information … technology that reduces ex ante private information, and compare collateral outcomes before and after adoption. Our results are …

increases with the opportunity for moral hazard (related to diligence, risk taking, or deception).Second, bankruptcy laws become …

Collateral is a widely used, but not well understood, debt-contracting feature. Two broad strands of theoretical … literature explain collateral as arising from the existence of either ex ante private information or ex post incentive problems … private information about borrower risk that is unobserved by the lender. The data also include public information about …

Collateral is a widely used, but not well understood, debt-contracting feature. Two broad strands of theoretical … literature explain collateral as arising from the existence of either ex ante private information or ex post incentive problems … private information about borrower risk that is unobserved by the lender. The data also include public information about …

We construct a Risk Management Index (RMI) to measure the strength and independence of the risk management function at … bank holding companies (BHCs). U.S. BHCs with higher RMI before the onset of the financial crisis have lower tail risk … period 1995 to 2010, BHCs with a higher lagged RMI have lower tail risk and higher return on assets, all else equal. Overall …

Article refers to the issue of credit risk management in commercial banks. Particular attention is paid to the problem …. -- credit risk ; probability of default ; stress test ; profitability …