We examine the determinants of the new issue maturity of corporate bonds. As credit rating decreases, new bond issues have longer maturities but substantial variation in maturity within each rating class remains. We seek to explain the variation of new issue maturity within credit classes. We...

Existing empirical work supports the notion that make whole and claw back bonds are explained as methods to resolve the underinvestment problem. We suggest that if these provisions genuinely resolve the underinvestment problem then make whole and claw back provision bondholders should share in...