This study investigates whether CEO perquisite of borrowing firms plays any significant role, both in terms of price and non-price settings, in financial contracts and reveals that lending banks demand significantly higher return (spread), more collateral, and stricter covenants from firms with...

This paper examines whether executive perquisites and corporate governance forces are crucial factors in explaining the likelihood of fraud commitment. Although some studies contend that lavish perks may be harmful to firm value, our results support the incentive alignment view that granting...