Measuring Financial Covenant Strictness in Private Debt Contracts

2013 ◽  
Author(s):  
Peter R. Demerjian ◽  
Edward L. Owens
Keyword(s):  
Debt Contracts ◽  
Private Debt

The Impact of Corporate Governance on the Restrictiveness of Covenants Used in Private Debt Contracts

2011 ◽  
Author(s):  
Intan Suryani Abu Bakar ◽  
Paul R. Mather ◽  
George Tanewski
Keyword(s):  
Corporate Governance ◽  
Debt Contracts ◽  
Private Debt ◽  
The Impact

The Role and Characteristics of Accounting-based Performance Pricing in Private Debt Contracts

2002 ◽  
Author(s):  
Ilia D. Dichev ◽  
Anne L. Beatty ◽  
Joseph Peter Weber
Keyword(s):  
Debt Contracts ◽  
Private Debt ◽  
Performance Pricing

Determinants of financial covenants and pricing of debt in private debt contracts: the UK evidence

2007 ◽  
Vol 37 (2) ◽  
pp. 151-166 ◽  
Author(s):  
Lance Moir ◽  
Sudi Sudarsanam
Keyword(s):  
Debt Contracts ◽  
Private Debt ◽  
The Uk

Scope for Renegotiation in Private Debt Contracts

2012 ◽  
Author(s):  
Valeri V. Nikolaev
Keyword(s):  
Debt Contracts ◽  
Private Debt

scholarly journals Board monitoring and covenant restrictiveness in private debt contracts during the global financial crisis

2018 ◽  
Vol 60 (S1) ◽  
pp. 661-692
Author(s):  
Intan Suryani Abu Bakar ◽  
Arifur Khan ◽  
Paul Mather ◽  
George Tanewski
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Debt Contracts ◽  
Private Debt ◽  
Board Monitoring ◽  
The Global Financial Crisis

scholarly journals Utilisation and restrictiveness of covenants in Australian private debt contracts

1998 ◽  
Vol 38 (2) ◽  
pp. 181-196 ◽  
Author(s):  
Julie Cotter
Keyword(s):  
Debt Contracts ◽  
Private Debt

scholarly journals Corporate boards and performance pricing in private debt contracts

2018 ◽  
Vol 50 ◽  
pp. 144-162 ◽  
Author(s):  
Intan Suryani Abu Bakar ◽  
Arifur Khan ◽  
Paul Mather ◽  
George Tanewski
Keyword(s):  
Corporate Boards ◽  
Debt Contracts ◽  
Private Debt ◽  
Performance Pricing ◽  
And Performance

Private lenders' use of analyst earnings forecasts when establishing debt covenant thresholds

2021 ◽  
Author(s):  
Andrew C. Call ◽  
John Donovan ◽  
Jared Jennings
Keyword(s):  
Fixed Effects ◽  
Earnings Forecasts ◽  
Analyst Forecasts ◽  
Debt Contracts ◽  
Private Debt ◽  
Debt Contracting ◽  
Variable Approach ◽  
Debt Covenant ◽  
Analyst Earnings ◽  
Instrumental Variable Approach

We examine whether lenders use analyst forecasts of the borrower's earnings as inputs when establishing covenant thresholds in private debt contracts. We find that, among debt contracts that include an earnings covenant, earnings thresholds are set closer to analyst forecasts when analysts have historically issued more accurate earnings forecasts. These results are robust to firm fixed effects and an instrumental variable approach. Further, we find that, following a plausibly exogenous decline in the availability of analyst earnings forecasts, debt contracts are less likely to include earnings covenants. Our evidence is consistent with lenders using analyst earnings forecasts as an input when establishing debt covenant thresholds and suggests sell-side analysts play a role in debt contracting.

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