The impact of corporate governance on the restrictiveness of covenants in private debt contract

• Main Authors: Abu Bakar, Intan Suryani, Mather, Paul, Tanewski, George
• Format: Conference or Workshop Item
• Language: English
• Published: 2012
• Subjects: HF5601 Accounting. Bookkeeping; HJ Public Finance
• Online Access: http://irep.iium.edu.my/27328/1/CG%26Cov_AAA-FRS2012__28June2012.pdf; http://irep.iium.edu.my/27328/
• Institution: Universiti Islam Antarabangsa Malaysia

We examine the association between corporate governance and the restrictiveness of covenants used in U.S. private debt contracts. Both corporate governance and covenants have been shown to play a role in mitigating agency problems associated with debt, hence a relationship is expected between these...