This Article develops a unique theory of performance-sensitive debt and argues that certain revenue-stage startups may be missing out on an important source of capital from asset-based loans. Debt contracts are performance sensitive to the extent any of the borrower's obligations adjust in...

This paper explores whether and how corporate social responsibility behavior affects firm value in highly distressed firms. Our results show that sustainability activity is a powerful instrument by which to strategically prevent damage to the company in the form of liquidation risk. Stronger...