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Risk, Contract Terms and Maturity in the Sovereign Bond Market

Bradley, Michael; De Lira Salvatierra, Irving; Gulati, Mitu - 2023

In this article we examine the relations between risk, the choice of foreign or local contract terms (parameters) and …

Persistent link: https://www.econbiz.de/10014354739

Further Evidence on Consequences of Debt Covenant Violations

Gao, Yu - 2016

We present new evidence on debt covenant violation (DCV) consequences that have not previously been examined in the literature. In particular, we show that a DCV triggers significant information asymmetry and uncertainty on the part of shareholders and auditors as reflected in higher bid-ask...

Persistent link: https://www.econbiz.de/10013007574

Trust and Contracting

Hilary, Gilles - 2015

Prior research has shown that trust has a positive effect on the economic welfare of nations. We investigate this result by analyzing the effect of endowed trust on agency problems within organizations. We find that firms located in U.S. counties where trust is more prevalent suffer less from...

Persistent link: https://www.econbiz.de/10013022888

Dynamic Regulation via Governmental Contracts

Kaal, Wulf A. - 2015

contracts, such as the corporate wrongdoers' self-reporting, preemptive remedial measures instituted by the entity to avoid … corporate criminal indictment, and the government's investigation of specific corporate wrongdoing, facilitate multilevel …

Persistent link: https://www.econbiz.de/10013032004

The Market Response to Implied Debt Covenant Violations

Stice, Derrald - 2018

least one earnings-based covenant. Combining earnings-based-covenant contract values from debt agreements with information …

Persistent link: https://www.econbiz.de/10012917308

Chapter 9. Governance and Stakeholders

Mehrotra, Vikas; Morck, Randall - 2017

Economic models routinely assume firms maximize shareholder wealth; however common law legal systems only require that officers and directors pursue the interests of the corporation, leaving this ill-defined. Economic arguments for shareholder wealth maximization derived from shareholders'...

Persistent link: https://www.econbiz.de/10014023372

Financial Contracting as Behavior Towards Risk

Krainer, Robert - 2014

interest problem the interrelated covenants in the financial contract shape the financial facts of business cycles. The model … valuation of bonds. Preliminary evidence from the U.S. nonfinancial corporate sector does not reject the predictions of the …

Persistent link: https://www.econbiz.de/10013055404

Trust : The Unwritten Contract In Corporate Governance

Larcker, David F. - 2014

Corporate governance systems exist to discourage self-interested behavior. One question that is often overlooked is how … extensive these systems should be. A look at corporate governance today suggests that self-interest is high because companies … discourages self interest and encourages trust?Topics, Issues and Controversies in Corporate Governance and Leadership: The Closer …

Persistent link: https://www.econbiz.de/10013063335

Lender-Shareholder Distance and Loan Contract Terms

Huang, Xiaoran - 2020

We study how lender-shareholder distance affects loan contract terms. We hypothesize that an increase in lender …

Persistent link: https://www.econbiz.de/10012828546

Contracting and Reporting Conservatism around a Change in Fiduciary Duties

Bens, Daniel A. - 2020

We exploit an influential 1991 Delaware court ruling to examine simultaneously two types of conservatism that play important roles in resolving creditor-owner agency conflicts: contracting conservatism and reporting conservatism. The ruling expanded managerial fiduciary duties in favor of...

Persistent link: https://www.econbiz.de/10012835513