designing the supply contract: adverse selection (i.e., the supplier's cost structure is private information) and lack of … two-part tariff under certain conditions (i.e., a single, linear contract could be optimal for the buyer). Even when the …

In the early models of incomplete contract neither party used to invest in the subject matter of the contract; those … realize subsequent to a binding contract, a systematic analysis has been attempted to see - first, how the legal remedies can … role than that has been realized. Focus remains on the ex-ante design of the contract, which would serve as an implicit …

that creditors acquire private information about borrowers via information covenants after a contract is in place. This in …

trades off the instantaneous audit cost versus the drift of the cash flow process. The contract is implemented in standard …

and interpretability of tests of lenders' use of the information for loan contract monitoring. To fill this gap, we … lenders' loan contract monitoring; (2) the covenants are positively associated with the frequency of loan contract amendments …

. Contract theory suggests that balance sheet-based covenants resolve debtholder-shareholder conflicts ex ante, whereas income …This paper examines the relation between state contract law and the use of accounting information in debt contracts … lenders to exert their control rights ex post if the contract law is more favorable to debtors (i.e., the law is pro …

Under conventional contract theory, contracts may be efficient by protecting relationship-specific investment from hold …. We also show that this inefficiency is worse if the parties enter into a binding and renegotiable contract to trade …