The determinants of the choice of maturity and restrictive covenants in debt contracts: a panel data approach
preprintposted on 01.08.2005, 15:59 by Maria do Rosario Correia
This paper provides a comprehensive analysis for the choice of contract terms included in UK Eurobonds. Typically the theory associates the choice of debt contract terms to firm and market characteristics, arguing that an adequate choice of debt contract terms allows for the reduction of debt-contracting costs. We use a panel-data approach to examine the validity of extant predictions concerning the choice of maturity, call options, convertible options and other covenants....
- Business and Economics