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Banking and Finance Law

Charles K Whitehead

Selected Works

Creditors

Publication Year

Articles 1 - 2 of 2

Full-Text Articles in Law

Creditors And Debt Governance, Charles K. Whitehead Feb 2015

Creditors And Debt Governance, Charles K. Whitehead

Charles K Whitehead

This chapter from the book Research Handbook on the Economics of Corporate Law (Claire Hill & Brett McDonnell, eds.), provides an introduction to the law and economic theory relating to creditors and debt governance. The chapter begins with a look at the traditional role of debt, focusing on the impact of debt on corporate governance and, in particular, the effect of an illiquid credit market on creditors’ reliance on covenants and monitoring. It then turns to changes in the private credit market and their effect on lending structure. Greater liquidity raises its own set of agency costs. In response, loans …

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Creditors And Debt Governance.Pdf, Charles K. Whitehead Feb 2011

Creditors And Debt Governance.Pdf, Charles K. Whitehead

Charles K Whitehead

This chapter from the book Research Handbook on the Economics of Corporate Law (Claire Hill & Brett McDonnell, eds.), provides an introduction to the law and economic theory relating to creditors and debt governance. The chapter begins with a look at the traditional role of debt, focusing on the impact of debt on corporate governance and, in particular, the effect of an illiquid credit market on creditors’ reliance on covenants and monitoring. It then turns to changes in the private credit market and their effect on lending structure. Greater liquidity raises its own set of agency costs. In response, loans …

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