The design of dept contracts

Bilodeau, Julien; Missonier-Piera, Franck

doi:10.22495/cocv12i2p1

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Journal article

The design of dept contracts
: evidence of cost effective use of covenants from a large sample of small loans

BP2-STS

Bilodeau, Julien Sherbrooke, Canada
Missonier-Piera, Franck ORCID University of Fribourg

2015

Published in:

Corporate Ownership & Control. - 2015, vol. 12, no. 2, p. 8-16

English This paper investigates the use of covenants in debt contracts as well as the role played by accounting numbers in those contracts. More specifically, it provides evidence that covenants, and more importantly accounting based covenants, are used in a cost effective way in these contracts. It also provides a unique description of the types of covenants and accounting numbers which are used in a large sample of loan issued to small Canadian firms.

Faculty

Faculté des sciences économiques et sociales et du management

Department

Département des sciences du Management

Language