This paper examines the relationship between the presence of blockholdings and stock returns and return volatility in the United Arab Emirates. Earlier studies report mixed results for the direction of the relationships across both developed and emerging markets. This study focuses specifically...

This article empirically shows that the cost of new debt is higher for firms that commit covenant violations. Using a proxy for product market competition to capture exogenous changes to a firm's competitive environment, I find that the cost is systematically higher for firms that operate in...

Purpose: The purpose of this paper is to identify the impact of governance structures in defining the relationship between profits and leverage. Design/methodology/approach: The paper uses the standard design used by Fama and French (2002) and employs it under different governance structures....

This paper examines earnings management activities around debt covenant violations. We focus on accruals management and real activities manipulation behavior of managers in the quarters around the covenant violation. We expect covenant restrictions to influence these activities in the quarters...