Hedge commitments and agency costs of debt: evidence from interest rate protection covenants and accounting conservatism
We provide large sample evidence that credible hedge commitments reduce the agency costs of debt and that accounting conservatism enhances hedge commitments. We examine 2,338 bank loans entered into by 263 mandatory derivative users that are contractually obligated by interest rate protection covena...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Article |
| Language: | English |
| Published: |
Springer-Verlag,
2014-06-04T19:38:37Z.
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| Subjects: | |
| Online Access: | Get fulltext |