Sentence examples for borrowing firm from inspiring English sources

I find that amendments to financial covenants and to loan amounts increase the cumulative abnormal returns of a borrowing firm by 10 15%.

For example, the process of a borrowing firm electing a bank-affiliated employee to its board of directors in order to increase managerial oversight is a much larger commitment than simply including debt covenants in loan contracts.

A violation of a covenant can put the borrowing firm into technical default and lead to the transfer of control rights to creditors, who then step in and exert strong influence over managerial decisions.

The arrangement works well for Société Générale, which is able to maintain its relationship with the borrowing firm without having to put up a lot of capital for the loan, and it allows Axa to piggyback on Société Générale's wealth of corporate customers.

In our sample of 11,137 institutional "leveraged" loan tranches between 1997 and 2007 from the DealScan database, 2,008 (18%) have participation by a "dual holder" institution that owns at least 0.1% of the borrowing firm's equity.

Like securitization, bonds are secured by and repaid primarily from collateral, but CB investors also have recourse to the borrowing firm.

As borrower-lender relations strengthen, borrowing firms are more likely to adopt corporate governance structures traditionally associated with lower shareholder value (i.e., CEO entrenchment, greater insider participation on boards, and less transparency in external reporting).

In our paper, "Bank Relations and Borrower Corporate Governance and Incentive Structures," we document that, as banks and borrowers develop closer relationships, borrowing firms adopt corporate governance and incentive structures that help to reduce the banks' risk of expropriation by the managers and shareholders.

It is well known that banks play an important role in monitoring borrowing firms (e.g., Diamond, 1984).

Using a differences-in-differences research design, we observe a decline in borrowing firms׳ reporting conservatism after CDS trade initiation.

Studies have stressed how bank monitoring improves borrowing firms' corporate governance, implicitly assuming that the incentives of shareholders and debtholders are aligned regarding corporate governance.