...John M. Bizjak; Swaminathan L. Kalpathy; Vassil T. Mihov ABSTRACT We find that firms that grant performance-contingent (p-c) equity awards with accounting-based vesting conditions to their CEOs have lower cost of debt and less restrictive loan terms. The benefits of p-c accounting-based awards...

... to using an instrumental variables approach. We further find that guideline adoption has a negative effect on bond yield spreads and that after the adoption, firms' risk-taking incentives are lower. These results suggest that guideline adoption benefits debtholders by lowering agency costs of debt. However...

...-insurance effect of diversification, which has been theoretically and empirically shown to drive the cost of debt capital ( Lewellen 1971 ; Hann et al. 2013 ). Second, our paper contributes to the emerging empirical literature on the impact of diversification on the cost of debt financing. Hann et al...

... be influenced by uninformative content. I use a unique dataset from a peer-to-peer lending website, Prosper.com , to demonstrate an economically large effect of voluntary, unverifiable disclosures in reducing the cost of debt. My results show an additional unverifiable disclosure is associated with a 1.27...

...Dan Dhaliwal; Chris Hogan; Robert Trezevant; Michael Wilkins ABSTRACT We test the relationship between the change in a firm's cost of debt and the disclosure of a material weakness in an initial Section 404 report. We find that, on average, a firm's credit spread on its publicly traded debt...