transparency is contingent on the state of the economy, with the regulator increasing disclosure in times of crises. Under this … policy, however, an increase in disclosure signals a deterioration of the economy’s fundamentals, so the regulator has …

This study uses covenant violations to provide evidence on how firms make disclosure decisions in the presence of … enhanced bank monitoring. Using a regression discontinuity design, I find that firms reduce disclosure following covenant … violations. A series of analyses suggest that part of this decline in disclosure reflects a delegation of monitoring to banks by …