We examine the impact of foreign institutional shareholders on the prevalence of restrictive bond covenants using a sample of 959 Yankee bonds from 29 countries over the period 2001–2019. We find a significantly negative relation between foreign institutional ownership and debt covenants. This...

Recent theoretical research suggests that information production is a positive externality of aggregate economic activity (Veldkamp, 2005). Both the quantity and quality of information increase during periods of economic expansion and decrease during periods of contraction. Based on this...

Building on rational choice institutionalism theory and Williamson's (2000) four-level social analysis framework, we investigate the influence of the informal institution of social trust on debt contract design in an international setting. Using a sample of non-U.S. firms that issue bonds in the...

We find a positive and significant relation between forecasted idiosyncratic volatility andreturns in a large international database covering 57 countries with over three million firmmonthobservations from July 1995 to June 2016. Our empirical results reveal substantialcross-country variation in...