References
- Agrawal, A., and J. Jaffe. 2003. “Do Takeover Targets Underperform? Evidence from Operating and Stock Returns.” The Journal of Financial and Quantitative Analysis 38 (4): 721–746. doi:https://doi.org/10.2307/4126741.
- Ambrose, B. W., and W. L. Megginson. 1992. “The Role of Asset Structure, Ownership Structure, and Takeover Defenses in Determining Acquisition Likelihood.” The Journal of Financial and Quantitative Analysis 27 (4): 575–589. doi:https://doi.org/10.2307/2331141.
- Asquith, P., A. Beatty, and J. Weber. 2005. “Performance Pricing in Bank Debt Contracts.” Journal of Accounting and Economics 40 (1–3): 101–128. doi:https://doi.org/10.1016/j.jacceco.2004.09.005.
- Ball, R., and S. P. Kothari. 1991. “Security Returns around Earnings Announcements.” Accounting Review 66: 718–738.
- Beatty, A., K. Ramesh, and J. Weber. 2002. “The Importance of Accounting Changes in Debt Contracts: The Cost of Flexibility in Covenant Calculations.” Journal of Accounting and Economics 33 (2): 205–227. doi:https://doi.org/10.1016/S0165-4101(02)00046-0.
- Beaver, W. H. 1968. “The Information Content of Annual Earnings Announcements.” Journal of Accounting Research 6: 67–92. doi:https://doi.org/10.2307/2490070.
- Beneish, M. D., and E. Press. 1993. “Costs of Technical Violation of Accounting-based Debt Covenants.” Accounting Review 68 (2): 233–257.
- Billett, M. T., T.-H. D. King, and D. C. Mauer. 2007. “Growth Opportunities and the Choice of Leverage, Debt Maturity, and Covenants.” The Journal of Finance 62 (2): 697–730. doi:https://doi.org/10.1111/j.1540-6261.2007.01221.x.
- Bradley, M., and M. R. Roberts. 2015. “The Structure and Pricing of Corporate Debt Covenants.” Quarterly Journal of Finance 5 (2): 1–37. doi:https://doi.org/10.1142/S2010139215500019.
- Brandt, M. W., R. Kishore, P. Santa-Clara, and M. Venkatachalam. 2008. “Earnings Announcements are Full of Surprises.” Working Paper.
- Brennan, M. J., and E. S. Schwartz. 1978. “Corporate Income Taxes, Valuation, and the Problem of Optimal Capital Structure.” The Journal of Business 51 (1): 103–114. doi:https://doi.org/10.1086/295987.
- Chari, V. V., R. Jagannathan, and A. R. Ofer. 1988. “Seasonalities in Security Returns: The Case of Earnings Announcements.” Journal of Financial Economics 21 (1): 101–121. doi:https://doi.org/10.1016/0304-405X(88)90033-5.
- Chava, S., P. Kumar, and A. Warga. 2010. “Managerial Agency and Bond Covenants.” Review of Financial Studies 23 (3): 1120–1148. doi:https://doi.org/10.1093/rfs/hhp072.
- Chava, S., and M. R. Roberts. 2008. “How Does Financing Impact Investment? The Role of Debt Covenants.” The Journal of Finance 63 (5): 2085–2121. doi:https://doi.org/10.1111/j.1540-6261.2008.01391.x.
- Christensen, H. B., and V. V. Nikolaev. 2012. “Capital versus Performance Covenants in Debt Contracts.” Journal of Accounting Research 50 (1): 75–116. doi:https://doi.org/10.1111/j.1475-679X.2011.00432.x.
- Cohen, D. A., A. Dey, T. Z. Lys, and S. V. Sunder. 2007. “Earnings Announcement Premia and the Limits to Arbitrage.” Journal of Accounting and Economics 43 (2–3): 153–180. doi:https://doi.org/10.1016/j.jacceco.2007.01.008.
- DeFond, M. L., and J. Jiambalvo. 1994. “Debt Covenant Violation and Manipulation of Accruals.” Journal of Accounting and Economics 17 (1–2): 145–176. doi:https://doi.org/10.1016/0165-4101(94)90008-6.
- DellaVigna, S., and J. M. Pollet. 2009. “Investor Inattention and Friday Earnings Announcements.” The Journal of Finance 64 (2): 709–749. doi:https://doi.org/10.1111/j.1540-6261.2009.01447.x.
- Dichev, I. D., and D. J. Skinner. 2002. “Large Sample Evidence on the Debt Covenant Hypothesis.” Journal of Accounting Research 40 (4): 1091–1123. doi:https://doi.org/10.1111/1475-679X.00083.
- Falato, A., and N. Liang. 2016. “Do Creditor Rights Increase Employment Risk? Evidence from Loan Covenants.” The Journal of Finance 71 (6): 2545–2590. doi:https://doi.org/10.1111/jofi.12435.
- Franz, D. R., H. R. Hassabelnaby, and G. J. Lobo. 2014. “Impact of Proximity to Debt Covenant Violation on Earnings Management.” Review of Accounting Studies 19 (1): 473–505. doi:https://doi.org/10.1007/s11142-013-9252-9.
- Frazzini, A., and O. Lamont. 2007. “The Earnings Announcement Premium and Trading Volume.” NBER Working Paper No. 13090.
- Giedt, J. Z. 2018. “Disentangling Target Motives and Bidders’ Selection of Targets.” Working Paper. George Washington University.
- Graham, J. R., C. R. Harvey, and S. Rajgopal. 2005. “The Economic Implications of Corporate Financial Reporting.” Journal of Accounting and Economics 40 (1–3): 3–73. doi:https://doi.org/10.1016/j.jacceco.2005.01.002.
- Hasbrouck, J. 1985. “The Characteristics of Takeover Targets Q and Other Measures.” Journal of Banking and Finance 9 (3): 351–362. doi:https://doi.org/10.1016/0378-4266(85)90038-X.
- Healy, P. M., and K. G. Palepu. 1990. “Effectiveness of Accounting-based Dividend Covenants.” Journal of Accounting and Economics 12 (1–3): 97–123. doi:https://doi.org/10.1016/0165-4101(90)90043-4.
- Heinkel, R. 1982. “A Theory of Capital Structure Relevance under Imperfect Information.” The Journal of Finance 37 (5): 1141–1150. doi:https://doi.org/10.1111/j.1540-6261.1982.tb03608.x.
- Helwege, J., J. Huang, and Y. Wang. 2017. “Debt Covenants and Cross-Sectional Equity Returns.” Management Science 63 (6): 1835–1854. doi:https://doi.org/10.1287/mnsc.2015.2381.
- Jensen, M. C. 1986. “Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers.” The American Economic Review 76: 323–329.
- Jensen, M. C., and W. H. Meckling. 1976. “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure.” Journal of Financial Economics 3 (4): 305–360. doi:https://doi.org/10.1016/0304-405X(76)90026-X.
- Kasznik, R., and B. Lev. 1995. “To Warn or Not to Warn: Management Disclosures in the Face of an Earnings Surprise.” The Accounting Review 70: 113–134.
- Kothari, S. P. 2001. “Capital Market Research in Accounting.” Journal of Accounting and Economics 31: 105–231.
- Lee, E., K. Pappas, and L. Xu. 2018. “Does Contracting Efficiency Strengthen or Weaken Information Efficiency? The Spill-over Effect of Debt Covenant Tightness on Equity Mispricing.” Working Paper.
- Lobo, G. J., M. Song, and M. H. Stanford. 2017. “The Effect of Analyst Forecasts during Earnings Announcements on Investor Responses to Reported Earnings.” The Accounting Review 92 (3): 239–263. doi:https://doi.org/10.2308/accr-51556.
- Masruwala, C., and S. Masruwala. 2014. “Is There a “Torpedo Effect” in Earnings Announcement Returns? The Role of Short-sales Constraints and Investor Disagreement.” Journal of Accounting, Auditing & Finance 29 (4): 1–28.
- Matsumoto, D. 2002. “Management’s Incentives to Avoid Negative Earnings Surprises.” The Accounting Review 77 (3): 483–514. doi:https://doi.org/10.2308/accr.2002.77.3.483.
- Modigliani, F., and M. H. Miller. 1963. “Corporate Income Taxes and the Cost of Capital: A Correction.” American Economic Review 53 (3): 433–443.
- Morck, R., A. Shleifer, and R. W. Vishny. 1988. “Management Ownership and Market Valuation: An Empirical Analysis.” Journal of Financial Economics 20: 293–315. doi:https://doi.org/10.1016/0304-405X(88)90048-7.
- Morck, R., A. Shleifer, and R. W. Vishny. 1989. “Alternative Mechanisms for Corporate Control.” American Economic Review 79 (4): 842–852.
- Nini, G., D. C. Smith, and A. Sufi. 2009. “Creditor Control Rights and Firm Investment Policy.” Journal of Financial Economics 92 (3): 1113–1146. doi:https://doi.org/10.1016/j.jfineco.2008.04.008.
- Nini, G., D. C. Smith, and A. Sufi. 2012. “Creditor Control Rights, Corporate Governance, and Firm Value.” Review of Financial Studies 25 (6): 1713–1761. doi:https://doi.org/10.1093/rfs/hhs007.
- Palepu, K. G. 1986. “Predicting Takeover Targets: A Methodological and Empirical Analysis.” Journal of Accounting and Economics 8 (1): 3–35. doi:https://doi.org/10.1016/0165-4101(86)90008-X.
- Payne, J., and W. Thomas. 2011. “The Torpedo Effect: Myth or Reality?” Journal of Accounting, Auditing & Finance 26 (2): 255–278. doi:https://doi.org/10.1177/0148558X11401216.
- Ravid, A. S., and O. H. Sarig. 1991. “Financial Signalling by Committing to Cash Outflows.” The Journal of Financial and Quantitative Analysis 26 (2): 165–180. doi:https://doi.org/10.2307/2331263.
- Roberts, M. R., and A. Sufi. 2009. “Renegotiation of Financial Contracts: Evidence from Private Credit Agreements.” Journal of Financial Economics 93 (2): 159–184. doi:https://doi.org/10.1016/j.jfineco.2008.08.005.
- Ross, S. A. 1977. “The Determination of Financial Structure: The Incentive-Signalling Approach.” The Bell Journal of Economics 8 (1): 23–40. doi:https://doi.org/10.2307/3003485.
- Shleifer, A., and R. W. Vishny. 1988. “Value Maximization and the Acquisition Process.” Journal of Economic Perspectives 2 (1): 7–20. doi:https://doi.org/10.1257/jep.2.1.7.
- Skinner, D., and R. Sloan. 2002. “Earnings Surprises, Growth Expectations, and Stock Returns, or Don’t Let an Earnings Torpedo Sink Your Portfolio.” Review of Accounting Studies 7 (2/3): 289–312. doi:https://doi.org/10.1023/A:1020294523516.
- Smith, C. W., and J. B. Warner. 1979. “On Financial Contracting: An Analysis of Bond Covenants.” Journal of Financial Economics 7 (2): 117–161. doi:https://doi.org/10.1016/0304-405X(79)90011-4.
- Starks, L. T., and P. S. Yoon. 1995. “Signaling, Investment Opportunities, and Dividend Announcements.” Review of Financial Studies 8 (4): 995–1018. doi:https://doi.org/10.1093/rfs/8.4.995.
- Stice, D. 2018. “The Market Response to Implied Debt Covenant Violations.” Journal of Business Finance & Accounting 45 (9–10): 1195–1223. doi:https://doi.org/10.1111/jbfa.12321.
- Sweeney, A. P. 1994. “Debt-covenant Violations and Managers’ Accounting Responses.” Journal of Accounting and Economics 17 (3): 281–308. doi:https://doi.org/10.1016/0165-4101(94)90030-2.
- Wang, J. 2017. “Debt Covenant Design and Creditor Control Rights: Evidence from the Tightest Covenant.” Journal of Corporate Finance 44: 331–352. doi:https://doi.org/10.1016/j.jcorpfin.2017.04.004.