search query: @indexterm LEASING / total: 316
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| Author: | Ang, J. S. Jung, Min-Je |
| Title: | Explicit versus implicit contracting in the debt market: The case of leasing. |
| Journal: | International Review of Financial Analysis
1998 : VOL. 7:2, p. 153-169 |
| Index terms: | Capital structure of companies Contracts Leasing |
| Language: | eng |
| Abstract: | The authors examine the presence of implicit contract in the financial markets. The contractual relationships between the firms and their fund provider may be either implicit or explicit. In particular, they study the relationship among the shareholders, bondholders and lessors. The results provide empirical support for the existence of implicit contract. Firms that are without extensive debt covenants to restrict the use of leases do not take advantage of the debtors by taking on more debts and/or leases than a sample of firms with explicit restrictions. The firms with implicit contract are also found to value long term relationships with capital suppliers. |
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