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 …

containing sustainability-performance-pricing provisions. Using a sustainability-linked loan contract sample from recent years … are stronger for borrowers with higher ESG- and credit-risk and for contracts with more sustainability performance metrics …

lending, borrower quality and collateral as a key variable in loan contract design. We used a unique data set based on the … examination of credit files of five leading German banks, thus relying on information actually used in the process of bank credit … decision-making and contract design. In particular, bank internal borrower ratings serve to evaluate borrower quality, and the …

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

costly to acquire and reduces the value of the loan contract to the borrower because it passes more of the continuation right …

contract renegotiations. I study whether the demand for monitoring determines the renegotiation intensity, defined as either … contract renegotiation trades off the benefits of enhanced monitoring with the costs of suboptimal creditor intervention …

borrower consent clause in a private debt contract increases in the intensity of accompanying creditor control rights in the … contract. This association is more pronounced for larger and less risky borrowers. We also find that loans with a borrower …

We investigate how borrower consent clause (BCC) is used in private debt contracts as a contract design mechanism to … rights, we find that adoption of ARL increases the likelihood of BCC inclusion. Using credit default swap (CDS) trading as a …

employ a regression discontinuity design to identify the effect of bank interventions on their borrowers' trade credit. The … results show that trade credit experiences a substantial decline when banks intervene in the borrowing firm following covenant … control rights. Such externalities are reflected in the loan contract design. Borrowing firms sign less restrictive loan …