What's my style? Supply‐side determinants of debt covenant inclusion
研究了贷款协议中债务契约的供给侧决定因素，发现牵头银行在合同中纳入的契约风格会持续至少3年，且受借款人违约历史、贷款规模、签约成本和抵押品等因素影响。
Abstract We examine the supply‐side determinants of debt covenants included in loan agreements. Controlling for borrower characteristics, we find evidence that the covenants that lead arranger banks include in new contracts persist into future contracts for at least 3 years. We document that this covenant style effect is smaller when borrowers have recently violated a debt covenant or when the loan issue amount is large, and it is larger when the costs of contracting are highest and when a borrower provides collateral. We also find that the covenant style effect decreases following changes in a bank's CEO or CFO. Overall, our evidence is consistent with lenders’ covenant preferences arising from strategic cost‐benefit analysis informed from prior lending experiences and being related to lender expertise in negotiating, monitoring and enforcing covenants.