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Carrizosa and Ryan (2017) explore the use of private information covenants, which contractually oblige borrowers to provide their lenders with private information: projected or intra-quarter financial statements. The authors offer evidence that creditors acquire private information about...
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As opposed to the public debt market, the ultimate users of bank loan ratings, lenders, may prefer inflated ratings to …
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resort to other means of monitoring to resolve agency issues of debt that involve less renegotiation cost, such as …
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This paper argues that academics, politicians, and the media have six commonly held but misguided beliefs about corporate governance. While Armstrong, Guay, and Weber (2010) discuss some of these misconceptions, a wider recognition that these beliefs are actually “myths” is important. They...
Persistent link: https://www.econbiz.de/10008695774
information is used for debt contracting. The theoretical literature shows mixed results whether conservative accounting is … conservatism in debt financing, but also beyond. The results overwhelmingly support the view that conservatism plays a useful role … in debt contracting, although there are also some mixed results. We describe key results and empirical designs, and we …
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