CEO contractual protection and debt contracting

• Main Authors: CHENG, Qiang, CHEN, Xia, LO, Alvis K., WANG, Xin
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2017
• Subjects: employment agreement; severance pay agreement; debt contracting; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/1625; https://ink.library.smu.edu.sg/context/soa_research/article/2652/viewcontent/ceo_contractual_protection_debt_contracting_2016_dec.pdf
• Institution: Singapore Management University

CEO employment agreements and severance pay agreements are prevalent among S&P1500 firms. While prior research has examined their impact on corporate decision from shareholders’ perspective, there is little research on their impact from debtholders’ perspective. We examine the effect on debt con...