Purpose – This paper aims to answer the following research questions: To what extent do banks use credit derivatives (CDs)? What are the differences between users and non-users? What are the main underlying motivations? Design/methodology/approach – The annual reports of 112 Italian banks...

The purpose of this research is to investigate whether the long-run relationship implied by profit maximization is valid for the Turkish manufacturing industry for the period of 1950-2001. During this period, the Turkish economy has experienced important policy changes, for example the...

The main goal of this paper is to estimate the most appropriate production function for Turkish banking industry over the 1980–2006 period. The empirical analysis shows that Cobb-Douglas type production function and with credit dependent variable is the most appropriate model of the banking...

The goal of this paper is to define a model to assess the potential for unfairness in a freeze-out bond covenant exchange offer by highlighting the role played by coordination among bondholders. To avoid covenant violation as the covenant becomes tighter, a firm can propose an exchange offer to...

A covenant is a special set of clauses in a firm's debt contract restricting business policy and allowing creditors to take specified action should the covenant terms be violated. Three main reasons for the inclusion of covenants in debt contracts are accounted for in the literature: they (1)...

Covenants are particular clauses in debt contracts of firms that restrict business policy, giving creditors the possibility of putting precise actions into force - normally early repayment - when the covenants are violated. We refer to the Agency Theory of Covenant (ATC), which assumes that as...