nor to observable firm characteristics at the initiation of the new loan, such as for example credit risk. It also does …

behavior. A line of credit appears in the optimal long term contract similar to (DeMarzo and Fishman, 2007). The novelty of the … contract is that the credit limit varies over time, as a function of the state of volatility. Credit limit does not vary … monotonically over firms. When uncertainty increases, credit limits are reduced for highly constraint firms, because the frictions …

are stronger for borrowers with higher ESG- and credit-risk and for contracts with more sustainability performance metrics …

from credit agreements of public firms. Using a novel dataset, I find evidence that when lenders invest more in screening … and monitoring the borrower or when lenders earn abnormal profits from the loan, credit agreements are more likely to have … potentially material information redacted. Furthermore, consistent with the notion that the withholding of information from credit …

borrower and evolve in response to changes in market conditions, such as expansion and contraction in credit supply. Building … (contraction) of credit will lead not only to a decrease (increase) in the interest rate but also a reduction (expansion) of …

.e., profitability) ratios rather than credit ratings. Overall, our study demonstrates how the design of debt contracts changes in …