Growth opportunities and the choice of leverage, debt maturity, and covenants

Journal of Finance

Volumn 62, Issue 2, 2007, Pages 697-730

  Billett, Matthew T ^a   King, Tao Hsien Dolly ^b   Mauer, David C ^c  

^a UNIVERSITY OF IOWA   (United States)

^b UNIVERSITY OF NORTH CAROLINA AT CHARLOTTE   (United States)

^c SOUTHERN METHODIST UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 33947213882     PISSN: 00221082     EISSN: 15406261     Source Type: Journal    
DOI: 10.1111/j.1540-6261.2007.01221.x     Document Type: Article

References (30)

1. Adam, Tim, and Vidhan K. Goyal, 2003, The investment opportunity set and its proxy variables: Theory and evidence, Working paper, Hong Kong University of Science and Technology.
2. Altman, Edward I., 1977, The Z-Score Bankruptcy Model: Past, Present, and Future (John Wiley & Sons, Inc., New York).
3. Anderson, Christopher W., 1999, Financial contracting under extreme uncertainty: An analysis of Brazilian corporate debentures, Journal of Financial Economics 51, 45-84.
4. Baker, Malcolm, and Jeffrey Wurgler, 2002, Market timing and capital structure, Journal of Finance 57, 1-32.
5. Barclay, Michael J., Leslie M. Marx, and Clifford W. Smith Jr., 2003, The joint determination of leverage and maturity, Journal of Corporate Finance 9, 149-167.
6. Barclay, Michael J., and Clifford W. Smith Jr., 1995, The maturity structure of corporate debt, Journal of Finance 50, 609-631.
7. Begley, Joy, 1994, Restrictive covenants included in public debt agreements: An empirical investigation, Working paper, University of British Columbia.
8. Bradley, Michael, and Michael R. Roberts, 2004, The structure and pricing of corporate debt covenants, Working paper, Duke University.
9. Chava, Sudheer, Praveen Kumar, and Arthur Warga, 2004, Agency costs and the pricing of bond covenants, Working paper, University of Houston.
10. Childs, Paul D., David C. Mauer, and Steven H. Ott, 2005, Interactions of corporate financing and investment decisions: The effects of agency conflicts, Journal of Financial Economics 76, 667-690.
11. Denis, David J., and Vassil T. Mihov, 2003, The choice among bank debt, non-bank private debt, and public debt: Evidence from new corporate borrowings, Journal of Financial Economics 70, 3-28.
12. Diamond, Douglas W., 1991, Debt maturity structure and liquidity risk, Quarterly Journal of Economics 106, 709-737.
13. Dichev, Ilia D., and Douglas J. Skinner, 2002, Large-sample evidence on the debt covenant hypothesis, Journal of Accounting Research 40, 1091-1123.
14. Gilson, Stuart C., and Jerold B. Warner, 1998, Private versus public debt: Evidence from firms that replace bank loans with junk bonds, Working paper, Harvard University and University of Rochester.
15. Goldberger, Arthur R., 1991, A Course in Econometrics (Harvard University Press, Cambridge, MA).
16. Goyal, Vidhan K., 2005, Market discipline of bank risk: Evidence from subordinated debt contracts, Journal of Financial Intermediation 14, 318-350.
17. Greene, William H., 2002, Econometric Analysis (Prentice Hall, Englewood Cliffs, NJ).
18. Jensen, MichaelC., andWilliam H. Meckling, 1976, Theory of the firm: Managerial behavior, agency costs, and capital structure, Journal of Financial Economics 3, 305-360.
19. Johnson, Shane A., 2003, Debt maturity and the effects of growth opportunities and liquidity risk on leverage, Review of Financial Studies 16, 209-236.
20. Kahan, Marcel, and David Yermack, 1998, Investment opportunities and the design of debt securities, Journal of Law, Economics, and Organization 14, 136-151.
21. Kalay, Avner, 1982, Stockholder-bondholder conflict and dividend constraints, Journal of Financial Economics 10, 211-233.
22. Kennedy, Peter, 2003, A Guide to Econometrics (The MIT Press, Cambridge, MA).
23. Malitz, Ileen, 1986, On financial contracting: The determinants of bond covenants, Financial Management 15, 18-25.
24. McDaniel, Morey, 1986, Bondholders and corporate governance, The Business Lawyer 41, 413-460.
25. Myers, Stewart C., 1977, Determinants of corporate borrowing, Journal of Financial Economics 5, 147-175.
26. Nanda, Vikram, and Youngkeol Yun, 1996, Financial innovation and investor wealth: A study of the poison put in convertible bonds, Journal of Corporate Finance 3, 1-22.
27. Nash, Robert C., Jeffry M. Netter, and Annette B. Poulsen, 2003, Determinants of contractual relations between shareholders and bondholders: Investment opportunities and restrictive covenants, Journal of Corporate Finance 9, 201-232.
28. Rajan, Raghuram G., and Luigi Zingales, 1995, What do we really know about capital structure? Some evidence from international data, Journal of Finance 50, 1421-1460.
29. Reisel, Natalia, 2004, On the value of restrictive covenants: An empirical investigation of public bond issues, Working paper, Rutgers University.
30. Smith, Clifford W. Jr., and Jerold B. Warner, 1979, On financial contracting: An analysis of bond covenants, Journal of Financial Economics 7, 117-161.