What's my style? Supply?side determinants of debt covenant inclusion

We examine the supply-side determinants of debt covenants included in loan agreements. Controlling for borrower characteristics, we find evidence that lead arranger banks include new contracts persist into future at least 3 years. document this covenant style effect is smaller when borrowers have recently violated a or issue amount large, and it larger costs contracting are highest provides collateral. also decreases following changes bank's CEO CFO. Overall, our consistent with lenders’ preferences arising from strategic cost-benefit analysis informed prior lending experiences being related to lender expertise negotiating, monitoring enforcing covenants.