Debt Covenants, Bankruptcy Risk, and Issuance Costs
Debt Covenants, Bankruptcy Risk, and Issuance Costs
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债务契约、破产风险和发行成本
DOI：
10.2139/ssrn.1805038
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发表时间：
2013
期刊：
影响因子：
--
通讯作者：
John K. Wald
中科院分区：
文献类型：
--
作者：
S. Mansi;Yaxuan Qi;John K. Wald
风险较高的公司使用更多的契约，但有效的契约应该通过限制管理层的行动来降低破产的可能性。通过考虑预期和实际的契约使用，我们理清了契约使用与破产风险之间的这两个关系。我们发现，预测的契约使用与较高的破产概率和较短的企业生存时间相关，而实际的契约使用与较低的破产概率和较长的企业生存相关。这一证据与使用契约降低破产风险的概念是一致的。然而，理论表明，两个公约--股票发行限制和评级下降看跌期权--并不能降低破产的可能性。从经验上看，我们发现，使用这两个公约中的任何一个都意味着更高的破产概率和更短的生存时间。在成本方面，我们发现有证据表明，具有更多限制性条款的公司债券的发行成本更高。虽然我们发现一些证据表明，具有更多契约的债券更难出售，但我们认为，这种契约-发行成本关系主要是由承销商面临的风险驱动的。总体而言，这些结果都证实了史密斯和华纳(1979)代价高昂的合同假设的一些基本方面，并对其进行了扩展。
Riskier firms use more covenants, yet effective covenants should reduce the probability of bankruptcy by restricting management’s actions. We disentangle these two relations between covenant use and bankruptcy risk by considering predicted and actual covenant use. We find that predicted covenant use is associated with a higher probability of bankruptcy and shorter firm survival, whereas actual covenant use is associated with a lower probability of bankruptcy and longer firm survival. This evidence is consistent with the notion that the use of covenants reduces bankruptcy risk. However, theory suggests that two covenants -- stock issuance restrictions and rating decline puts -- do not reduce the probability of bankruptcy. Empirically, we find that the use of either of these covenants implies a higher probability of bankruptcy and a shorter survival time. On the cost side, we find evidence that corporate bonds with more restrictive covenants have higher issuance costs. While we find some evidence that bonds with more covenants are more difficult to sell, we argue that this covenant-issue cost relation is mainly driven by the risk to underwriters. Overall, these results both confirm some essential aspects of, and expand upon, Smith and Warner’s (1979) costly contracting hypothesis.
DOI：
--
发表时间：
2005
期刊：
影响因子：
--
作者：
McKenzie;C.(Takaoka S.との共著);McKenzie C.R.(Takaoka S.との共著);McKenzie C.R.(Takaoka S.との共著);金子隆;McKenzie C.R.(Takaoka S.との共著);McKenzie C.R.(Takaoka S.との共著)
通讯作者：
McKenzie C.R.(Takaoka S.との共著)