کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
5086541 | 1478183 | 2016 | 15 صفحه PDF | دانلود رایگان |
- We specify covenant definitions using Compustat data that minimize measurement error for all individual Dealscan covenants.
- We use these definitions to create a measure of aggregate probability of covenant violation.
- We provide evidence that our aggregate probability measure is superior to alternatives used in prior literature.
We measure the probability that a borrower will violate financial covenants in private debt contracts. We analyze hand-coded data and specify standard covenant definitions using Compustat data that minimize measurement error for all individual Dealscan covenants. We use these definitions to create a measure of aggregate probability of violation, which can be used across all covenants in a loan or among covenant subsets of interest. We provide evidence that our aggregate probability measure is superior to alternatives used in prior literature.
Journal: Journal of Accounting and Economics - Volume 61, Issues 2â3, AprilâMay 2016, Pages 433-447