Growth Opportunities and the Choice of Leverage, Debt Maturity, and Covenants

By Matthew T. Billett, T. D. King, David C. Mauer. 2007

753 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/dae22d571666f011c880f5d41c6803c596653918

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Citations in the corpus

Do Creditor Rights Increase Employment Risk? Evidence from Loan Covenants (2014, background): “The time-series analysis 22In particular, we include investment (Row [9]); a dummy for whether the firm undergoes a divestiture of assets in any given year (Row [10]); 2nd- and 5th-order non-liner splines of the distance from the covenant threshold (Rows [11] and [12]); book leverage (Row [13]); Tob”
Corporate hedging and the cost of debt (2014, methodology): “In the spirit of Billett, King, and Mauer (2007), for each bond we count the number of covenants and calculate risk-shifting index as: [1 – (covenant count divided by five)].”
Corporate debt financing and earnings quality (2010, neutral): “Opportunistic managers are more likely to use their financial reporting discretion because (1) financial leverage frequently serves as a proxy for closeness to accounting-based covenant violations (Billett et al., 2007; Dichev and Skinner, 2002; Press and Weintrop, 1990; and Smith, 1993), and (2) th”
Why Do Loans Contain Covenants? Evidence from Lending Relationships (2017, neutral): “See, for example, Billett et al. (2007), Chava et al.”
Mitigating Incentive Conflicts in Inter-Firm Relationships: Evidence from Long-Term Supply Contracts (2013, background): “If duration and covenants are substitute mechanisms for overcoming information problems, I expect the coefficient on Financial Covenant to be positive (Billet et al. [2007], Bradley and Roberts [2004]).”
Corporate Social Responsibility and the Cost of Corporate Bonds (2015, background): “Consistent with Billett et al. (2007), we divide the number of bondholder protective covenants in a bond issue by the maximum number of bondholder protective covenants in our sample to create an index (Covenant) that varies from zero to one.”
Optimal Priority Structure, Capital Structure, and Investment (2012, neutral): “5 For example, see Brennan and Schwartz (1984), Mello and Parsons (1992), Mauer and Triantis (1994), Mauer and Ott (2000), Childs, Mauer, and Ott (2005), Lobanov and Strebulaev (2007), Strebulaev (2007), Sundaresan and Wang (2007), Titman and Tsyplakov (2007), Hackbarth (2008), Tserlukevich (2008), ”