borrowers likely involve fewer monitoring tools and weaker control rights. We evaluate these explanations of cov-lite contract …

.e., profitability) ratios rather than credit ratings. Overall, our study demonstrates how the design of debt contracts changes in …

use of default clauses and their restrictiveness within the same type of lending contract but also across loans and bonds …

in the syndicated loan market. We show that a covenant violation in the prior loan contract provides a signal to … creditors which results in stricter contract terms for the subsequent new loan. This signal is neither related to unobservable … nor to observable firm characteristics at the initiation of the new loan, such as for example credit risk. It also does …

This paper examines the relationship between debt contracts and state contract law. We first develop an index to … evaluate whether each state's law is favorable or unfavorable to lenders. We then analyze how the contract terms, the frequency … most likely to be used when the contract is governed by law that is favorable to debtors, and that out-of-state borrowers …