haku: @author Chen, A. / yhteensä: 5
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| Tekijä: | Chen, A. Hung, M.-W. Mazumdar, S. |
| Otsikko: | Loan covenants and corporate debt policy under bank regulations |
| Lehti: | Journal of Banking and Finance
1995 : NOV, VOL. 19:8, p. 1419-1436 |
| Asiasana: | LOANS DEBT POLICY |
| Kieli: | eng |
| Tiivistelmä: | Firms rely on short-term, flexible bank credit to finance certain projects. Banks offer such "bridge" loans after imposing safety covenants on their clients. These covenants have important spill-over effects on the values of the firm's other corporate debt liabilities and its equity value. In particular, the authors demonstrate that the firm's senior bondholders derive a implicit value of protection by delegating the responsibility of monitoring the firm to the bank. The authors examine the firm's optimal debt policy under alternative bank credit regimes. |
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