This paper reviews theoretical and empirical work on financial contracting that is relevant to accounting researchers. Its primary objective is to discuss how the use of accounting information in contracts enhances contracting efficiency and to suggest avenues for future research. We argue that...

This paper reviews theoretical and empirical work on financial contracting that is relevant to accounting researchers. Its primary objective is to discuss how the use of accounting information in contracts enhances contracting efficiency and to suggest avenues for future research. We argue that...

We document a novel trend in syndicated lending where some participants voluntarily waive their rights to access borrowers’ private information. Although these public-side lenders are unable to use private information to evaluate borrowers’ creditworthiness, forgoing their access to private...

We investigate the association between direct debtholder monitoring via bond covenants and delegated monitoring via borrowers' corporate governance mechanisms. We find that bond contracts include fewer covenants when the borrower's corporate governance is more effective in mitigating the agency...

We examine the determinants of events of default clauses in syndicated loan and bond contracts, provisions that allow lenders to request the repayment of principal and to terminate lending commitments. We document significant variation in the use of default clauses and their restrictiveness...