Access the full text.
Sign up today, get DeepDyve free for 14 days.
E. Fama (1985)
What's different about banks?☆Journal of Monetary Economics, 15
Tim Campbell, William Kracaw (1980)
Information Production, Market Signalling, and the Theory of Financial IntermediationJournal of Finance, 35
Douglas Diamond (1991)
Debt Maturity Structure and Liquidity RiskQuarterly Journal of Economics, 106
Robert Gertner, D. Scharfstein (1991)
A Theory of Workouts and the Effects of Reorganization LawNBER Working Paper Series
Beneish Beneish, Eric Eric (1993)
Costs of technical violation of accounting based covenantsAccounting Review, 68
Gertner Gertner, David David (1991)
A theory of workouts and the effects of reorganization lawJournal of Finance, 46
M. Dewatripont, J. Tirole (1994)
A theory of debt and equity: diversity of securities and manager-shareholder congruenceULB Institutional Repository
C. James (1987)
Some evidence on the uniqueness of bank loansJournal of Financial Economics, 19
M. Carey, S. Prowse, J. Rea, Gregory Udell (1994)
The economics of the private placement market(summary of staff study 166)Federal Reserve Bulletin
Dewatripont Dewatripont, Jean Jean (1992)
A theory of debt and equity—Diversity of securities and management‐shareholder congruenceQuaraterly Journal of Economics, 109
Charles Calomiris, C. Himmelberg, P. Wachtel (1994)
Commercial Paper, Corporate Finance, and the Business Cycle: A Microeconomic PerspectiveS&P Global Market Intelligence Research Paper Series
(1993)
Commercial paper and corporate finance: A microeconomic perspective, mimeo, University of IIlinois
Arnoud Boot, A. Thakor, Gregory Udell (1991)
Secured Lending and Default Risk: Equilibrium Analysis, Policy Implications and Empirical ResultsThe Economic Journal, 101
(1973)
The drafting of loan agreements: A borrower's
Simpson Simpson (1973)
The drafting of loan agreements: A borrower's viewpointBusiness Lawyer, 29
S. Myers, R. Rajan (1995)
The Paradox of LiquidityNBER Working Paper Series
Andrew Winton (1995)
Costly State Verification and Multiple Investors: The Role of SeniorityReview of Financial Studies, 8
(1993)
report that approximately 80% of bank debt
S. Longhofer (1994)
Bankruptcy rules and debt contracting: on the relative efficiency of absolute priority, proportionate priority, and first-come, first-served rules
R. Stulz, H. Johnson (1985)
An analysis of secured debtJournal of Financial Economics, 14
Kevin Chen, K. Wei (1993)
Creditors' decisions to waive violations of accounting-based debt covenantsAccounting review: A quarterly journal of the American Accounting Association, 68
M. Beneish, Eric Press (1995)
Interrelation Among Events of DefaultContemporary Accounting Research, 12
Clifford Smith, Jerold Warner (1979)
On financial contracting: An analysis of bond covenantsJournal of Financial Economics, 7
H. Leland., David Pyle. (1977)
INFORMATIONAL ASYMMETRIES, FINANCIAL STRUCTURE, AND FINANCIAL INTERMEDIATIONJournal of Finance, 32
David Brown, C. James, Robert Mooradian (1993)
The information content of distressed restructurings involving public and private debt claimsJournal of Financial Economics, 33
Scott Lummer, John Mcconnell (1989)
Further evidence on the bank lending process and the capital-market response to bank loan agreementsJournal of Financial Economics, 25
Douglas Diamond (1984)
Financial Intermediation and Delegated MonitoringThe Review of Economic Studies, 51
M. Harris, A. Raviv (1995)
The Role of Games in Security DesignReview of Financial Studies, 8
Erik Berglöf, Ernst-Ludwig Thadden (1994)
Short-Term versus Long-Term Interests: Capital Structure with Multiple InvestorsQuarterly Journal of Economics, 109
M. Petersen, R. Rajan (1994)
The Benefits of Lending Relationships: Evidence from Small Business DataJournal of Finance, 49
Michael Barclay, Clifford Smith (1995)
The Maturity Structure of Corporate DebtJournal of Finance, 50
J. Banks, J. Sobel (1987)
Equilibrium Selection in Signaling GamesEconometrica, 55
E. Berkovitch, Ronen Israel (1996)
The Design of Internal Control and Capital StructureReview of Financial Studies, 9
Marcel Kahan, Bruce Tuckman (1993)
Private vs. Public Lending: Evidence from Covenants
Douglas Diamond (1993)
Seniority and maturity of debt contractsJournal of Financial Economics, 33
Mitchell Berlin, Loretta Mester (1992)
Debt covenants and renegotiationJournal of Financial Intermediation, 2
(1993)
Financial structure, distress, and restructuring
(1993)
When banks take equity: An analysis of the agency costs of debt
David Besanko, G. Kanatas (1993)
Credit Market Equilibrium with Bank Monitoring and Moral HazardReview of Financial Studies, 6
Randal Picker (1992)
Security Interests, Misbehavior, and Common PoolsUniversity of Chicago Law Review, 59
(1991)
Financial covenants in commercial loan documentation
David Besanko, A. Thakor (1987)
Collateral and Rationing: Sorting Equilibria in Monopolistic and Competitive Credit MarketsInternational Economic Review, 28
Douglas Diamond (1991)
Monitoring and Reputation: The Choice between Bank Loans and Directly Placed DebtJournal of Political Economy, 99
John Persons (1994)
Liars Never Prosper? How Management Misrepresentation Reduces Monitoring CostsSocial Science Research Network
Lloyd Lloyd (1991)
Financial covenants in commercial loan documentation: Uses and limitationsUniversity of Tennessee Law Review, 58
ABSTRACT Although monitoring borrowers is thought to be a major function of financial institutions, the presence of other claimants reduces an institutional lender's incentives to do this. Thus loan contracts must be structured to enhance the lender's incentives to monitor. Covenants make a loan's effective maturity, and the ability to collateralize makes a loan's effective priority, contingent on monitoring by the lender. Thus both covenants and collateral can be motivated as contractual devices that increase a lender's incentive to monitor. These results are consistent with a number of stylized facts about the use of covenants and collateral in institutional lending.
The Journal of Finance – Wiley
Published: Sep 1, 1995
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.