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The Determinants of Bond Covenants: The Case of US Firms
Euro-Asian Journal of Economics and Finance
View Archive Info| Field | Value | |
| Title |
The Determinants of Bond Covenants: The Case of US Firms
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| Creator |
Emira, Houaneb
Amel, Belanes |
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| Subject |
Bond debt, bond covenants, firm’s characteristics, debt characteristics, agency problems
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| Description |
The objective of this paper is to highlight different factors relating to firm’s characteristics and debt’s characteristics that may influence the presence of different types of bond covenant in debt contract. Using a sample of large US firms and choosing only a contract per firm over the period 2000-2010, we find that, concerning the firm’s characteristics, the inclusion of a large number of covenants in the debt agreement is related to the high indebtedness of the firm, to unavailability of cash flow and, also, to the firm's profitability. Regarding the debt’s characteristics, we find that the inclusion of bond covenants depends on the maturity of the debt and the debt rating. Our results are steady with previous studies.
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| Publisher |
Academy of Business & Scientific Research
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| Date |
2015-07-12
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
—
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| Identifier |
http://absronline.org/journals/index.php/eajef/article/view/526
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| Source |
Euro-Asian Journal of Economics and Finance; Vol 3 No 3 (2015): July; 139-157
2310-4929 2310-0184 |
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| Language |
eng
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| Relation |
http://absronline.org/journals/index.php/eajef/article/view/526/547
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| Rights |
Copyright (c) 2015 Euro-Asian Journal of Economics and Finance
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