Debt Heterogeneity and Covenants

Published Online:https://doi.org/10.1287/mnsc.2018.3141

References

  • Ai C, Norton E (2003) Interaction terms in logit and probit models. Econom. Lett. 80(1):123–129.CrossrefGoogle Scholar
  • Almeida H, Campello M, Laranjeira B, Weisbenner S (2011) Corporate debt maturity and the real effects of the 2007 credit crisis. Critical Finance Rev. 1(1):3–58.CrossrefGoogle Scholar
  • Angrist J, Pischke J (2009) Mostly Harmless Econometrics (Princeton University Press, Princeton, NJ).CrossrefGoogle Scholar
  • Asquith P, Gertner R, Scharfstein D (1994) Anatomy of financial distress: An examination of junk-bond issuers. Quart. J. Econom. 109(3):625–658.CrossrefGoogle Scholar
  • Bharath S, Sunder J, Sunder S (2008) Accounting quality and debt contracting. Accounting Rev. 83(1):1–28.CrossrefGoogle Scholar
  • Berglöf E, von Thadden E (1994) Short-term versus long-term interests: Capital structure with multiple investors. Quart. J. Econom. 109(4):1055–1084.CrossrefGoogle Scholar
  • Bolton P, Freixas X (2000) Equity, bonds, and bank debt: Capital structure and financial market equilibrium under asymmetric information. J. Political Econom. 108(2):324–351.CrossrefGoogle Scholar
  • Bolton P, Scharfstein D (1996) Optimal debt structure and the number of creditors. J. Political Econom. 104(1):1–25.CrossrefGoogle Scholar
  • Booth J (1992) Contract costs, bank loans, and the cross-monitoring hypothesis. J. Financial Econom. 31(1):25–41.CrossrefGoogle Scholar
  • Bradley M, Roberts M (2015) The structure and pricing of corporate debt covenants. Quart. J. Finance 5(2):1–37.CrossrefGoogle Scholar
  • Bris A, Welch I (2005) The optimal concentration of creditors. J. Finance 60(5):2193–2212.CrossrefGoogle Scholar
  • Cameron C, Trivedi P (2005) Microeconometrics: Methods and Applications (Cambridge University Press, New York).CrossrefGoogle Scholar
  • Chang X, Dasgupta S, Hilary G (2009) The effect of auditor quality on financing decisions. Accounting Rev. 84(4):1085–1117.CrossrefGoogle Scholar
  • Chava S, Roberts M (2008) How does financing impact investment? The role of debt covenants. J. Finance 63(5):2085–2121.CrossrefGoogle Scholar
  • Christensen H, Nikolaev V (2012) Capital versus performance covenants in debt contracts. J. Accounting Res. 50(1):75–116.CrossrefGoogle Scholar
  • Colla P, Ippolito F, Li K (2013) Debt specialization. J. Finance 68(5):2117–2141.CrossrefGoogle Scholar
  • Dass N, Nanda V, Wang Q (2012) Within-syndicate conflicts and financial contracts: Evidence from bank loans. Working paper, Georgia Institute of Technology, Atlanta.Google Scholar
  • Datta S, Iskandar-Datta M, Patel A (1999) Bank monitoring and the pricing of corporate public debt. J. Financial Econom. 51:435–449.CrossrefGoogle Scholar
  • Davydenko S, Strebulaev I (2007) Strategic actions and credit spreads: An empirical investigation. J. Finance 62(6):2633–2671.CrossrefGoogle Scholar
  • Dechow P, Sloan R, Sweeny A (1995) Detecting earnings management. Accounting Rev. 70:193–2225.Google Scholar
  • DeMarzo P, Fishman M (2007) Optimal long-term financial contracting. Rev. Financial Stud. 20(6):2079–2128.CrossrefGoogle Scholar
  • Demiroglu C, James C (2010) The information content of bank loan covenants. Rev. Financial Stud. 23(10):3700–3737.CrossrefGoogle Scholar
  • Denis D, Wang J (2014) Debt covenant renegotiations and creditor control rights. J. Financial Econom. 113(3):348–367.CrossrefGoogle Scholar
  • Detragiache E, Garella P, Guiso L (2000) Multiple versus single banking relationships: Theory and evidence. J. Finance 55(3):1133–1161.CrossrefGoogle Scholar
  • Diamond D (1991) Debt maturity structure and liquidity risk. Quart. J. Econom. 106(3):709–737.CrossrefGoogle Scholar
  • Diamond D (1993) Seniority and maturity of debt contracts. J. Financial Econom. 33(3):341–368.CrossrefGoogle Scholar
  • Diamond D, Dybvig P (1983) Bank runs, deposit insurance, and liquidity. J. Political Econom. 91(3):401–419.CrossrefGoogle Scholar
  • Fresard L, Valta P (2016) How does corporate investment respond to increased entry threat? Rev. Corporate Finance Stud. 5(1):1–35.CrossrefGoogle Scholar
  • Gârleanu N, Zwiebel J (2009) Design and renegotiation of debt covenants. Rev. Financial Stud. 22(2):749–781.CrossrefGoogle Scholar
  • Gertner R, Scharfstein D (1991) A theory of workouts and the effects of reorganization law. J. Finance 46(4):1189–1222.Google Scholar
  • Giammarino R (1989) The resolution of financial distress. Rev. Financial Stud. 2(1):25–47.CrossrefGoogle Scholar
  • Goldstein I, Pauzner A (2005) Demand-deposit contracts and the probability of bank runs. J. Finance 60(3):1293–1327.CrossrefGoogle Scholar
  • Greene W (2004) The behaviour of the maximum likelihood estimator of limited dependent variable models in the presence of fixed effects. Econometrics J. 7(1):98–119.CrossrefGoogle Scholar
  • Graham J, Li S, Qiu J (2008) Corporate misreporting and bank loan contracting. J. Financial Econom. 89(1):44–61.CrossrefGoogle Scholar
  • He Z, Xiong W (2012) Dynamic debt runs. Rev. Financial Stud. 25(6):1799–1843.CrossrefGoogle Scholar
  • Hoshi T, Kashyap A, Scharfstein D (1990) The role of banks in reducing the costs of financial distress in Japan. J. Financial Econom. 27(1):67–88.CrossrefGoogle Scholar
  • Imbens G, Angrist J (1994) Identification and estimation of local average treatment effects. Econometrica 62(2):467–475.CrossrefGoogle Scholar
  • Ivashina V, Iverson B, Smith D (2016) The ownership and trading of debt claims in chapter 11 restructurings. J. Financial Econom. 119(2):316–335.CrossrefGoogle Scholar
  • Jensen M, Meckling W (1976) Theory of the firm: Managerial behavior, agency costs and ownership structure. J. Financial Econom. 3(4):305–360.CrossrefGoogle Scholar
  • Lancaster T (2000) The incidental parameter problem since 1948. J. Econometrics 95(2):391–413.CrossrefGoogle Scholar
  • Murfin J (2012) The supply-side determinants of loan contract strictness. J. Finance 67(5):1565–1601.CrossrefGoogle Scholar
  • Nini G, Smith D, Sufi A (2009) Creditor control rights and firm investment policy. J. Financial Econom. 92(3):400–420.CrossrefGoogle Scholar
  • Nini G, Smith D, Sufi A (2012) Creditor control rights, corporate governance, and firm value. Rev. Financial Stud. 25(6):1713–1761.CrossrefGoogle Scholar
  • Park C (2000) Monitoring and structure of debt contracts. J. Finance 55(5):2157–2195.CrossrefGoogle Scholar
  • Rajan R, Winton A (1995) Covenants and collateral as incentives to monitor. J. Finance 50(4):1113–1146.CrossrefGoogle Scholar
  • Rauh J, Sufi A (2010) Capital structure and debt structure. Rev. Financial Stud. 23:4242–4280.CrossrefGoogle Scholar
  • Roberts M, Sufi A (2009) Control rights and capital structure: An empirical investigation. J. Finance 64(4):1657–1695.CrossrefGoogle Scholar
  • Sloan R (1996) Do stock prices fully reflect information in accruals and cash flows about future earnings. Accounting Rev. 71(3):289–315.Google Scholar
  • Smith C, Warner J (1979) On financial contracting: An analysis of bond covenants. J. Financial Econom. 7(2):117–161.CrossrefGoogle Scholar
  • Stock J, Wright J, Yogo M (2002) A survey of weak instruments and weak identification in generalized method of moments. J. Bus. Econom. Statist. 20(4):518–529.CrossrefGoogle Scholar
  • Sufi A (2007) Information asymmetry and financing arrangements: Evidence from syndicated loans. J. Finance 62(2):629–668.CrossrefGoogle Scholar
  • Teoh S, Welch I, Wong T (1998) Earnings management and the underperformance of seasoned equity offerings. J. Financial Econom. 50(1):63–99.CrossrefGoogle Scholar
  • Tirole J (2006) The Theory of Corporate Finance (Princeton University Press, Princeton, NJ).Google Scholar
  • Wooldridge J (2002) Econometric Analysis of Cross Section and Panel Data (MIT Press, Cambridge, MA).Google Scholar
  • Wruck, K (1990) Financial distress, reorganization, and organizational efficiency. J. Financial Econom. 27(2):419–444.CrossrefGoogle Scholar
  • Zhong H (2014) A dynamic model of optimal creditor dispersion. Working paper, University of Minnesota, Minneapolis.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.