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use of default clauses and their restrictiveness within the same type of lending contract but also across loans and bonds …
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Change of management restrictions (CMRs) in loan contracts give lenders explicit ex-ante control rights over managerial retention and selection. This paper shows that lenders use CMRs to mitigate risks arising from CEO turnover, especially those related to the loss of human capital and...
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contracting. We find evidence of reduced reliance on inside debt for debt contracting when borrowers have credit constraints …
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