Empirical and survey evidence suggests that firms often manipulate reported numbers to avoid debt covenant violations. The theoretical literature on debt contracting, by and large, has ignored the borrower ability to manipulate financial reports. Building upon a standard debt financing setting with continuation decisions based on reported signals, we study the effect of the borrower’s ability t...

This article explores the advantages of covenant-keeping among the Yoruba people using them as models to be emulated in the contemporary Nigerian society. It aims at using the findings as a leverage to address the evils of corruption, abuse of office, oppression and money laundering prevalent in the country. A quick reflection on the socio-political and economic scenes in Nigeria shows a situat...

Cassell J, Buchman TG, Streat S, et al. Surgeons, intensivists, and the covenant of care: administrative models and values affecting care at the end of life—Updated. Crit Care Med 2003;31:1551–9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....

In this paper we offer the first large sample evidence on the availability and usage of credit lines in U.S. public corporations and use it to re-examine the existing findings on corporate liquidity. We show that the availability of credit lines is widespread and that average undrawn credit is of the same order of magnitude as cash holdings. We test the trade-off theory of liquidity according t...

We analyze the relation between comprehensive measures of board quality and the cost as well as the non-price terms of bank loans. We show that firms with higher quality boards and even a single (non-insider) advisory board member borrow at lower interest rates. This relation exists even after controlling for ownership structure, CEO compensation policy, and shareholder protection as well as th...

In order to attain waste reduction and the closing of material life cycles, the Dutch Ministry of Environment made an attempt to sign a covenant with the producers and importers of household appliances (the so-called white and brown goods). The negotiations started in 1992 involving all stakeholders: representatives of the producers and importers, the government (state, provincial and local lev...

Microblogging websites, especially Twitter have become an important means of communication, in todays time. Often these services have been found to be faster than conventional news services. With millions of users, a need was felt to classify users based on ambient metadata associated with their user accounts. We particularly look at the effectiveness of the ‘profile description’ field in order...