File(s) under permanent embargo

Reason: Restricted by author. A copy can be supplied under Section 51(2) of the Australian Copyright Act 1968 by submitting a document delivery request through your library or by emailing document.delivery@monash.edu

Loan Covenants in Private Debt Contracts

thesis
posted on 19.07.2018, 00:39 by JESSLYN QIAN HUI LIM
This dissertation conducts an empirical exploration of covenants in private debt contracting. It provides evidence that covenant violations increase borrowing costs on subsequent loan contracts. The results indicate that lenders’ dual loan and equity ownership in the borrowing firm helps align interest, reduces the need to monitor via covenants, and relaxes loan contract terms. The analyses also suggest that corporate boards with a higher proportion of directors appointed after the CEO assumed office are associated with weaker internal monitoring hence tighter loan terms. The findings emphasise the importance of covenants as tools to protect lenders against borrowers’ moral hazard behaviour.

History

Campus location

Australia

Principal supervisor

Viet Do

Additional supervisor 1

Tram Vu

Year of Award

2018

Department, School or Centre

Banking and Finance

Course

Doctor of Philosophy

Degree Type

DOCTORATE

Faculty

Faculty of Business and Economics

Usage metrics

Categories

Exports