Disclosure and technical default
Disclosure and technical default
1) Analyse the role and theoretical rationale for the introduction of covenants in debt contracting as it is related to corporate governance issues. Such as Disclosure and technical default.
2) Discuss the effects of debt covenants in various corporate finance outcomes by providing
theoretical and empirical evidence to support your case.
Please use two books i posted
Vashishtha, Rahul, 2014, The role of bank monitoring in borrowers? discretionary disclosure:
Evidence from covenant violations, Journal of Accounting and Economics 57, 176-195.
Sweeney, Amy Patricia, 1994, Debt-covenant violations and managers' accounting responses, Journal
of Accounting and Economics 17, 281-308.