Family Firms, Debtholder-Shareholder Agency Costs and the Use of Covenants in Private Debt

Author:

Bagnoli Mark E.,Liu Hsin-Tsai,Watts Susan G.

Publisher

Elsevier BV

Reference16 articles.

1. Variable definitions are as follows. Family Firm Dummy= 1 if firm is identified as a family firm by Business Week in its November 10, 2003, issue, else 0; Leverage: ratio of long-term debt to total assets (Compustat item # 51 / item # 44); Growth: book-to-market ratio;with interest rate spread and maturity information available in the 2005 Dealscan database, made to the family and non-family firms in the S&P 500 as identified in Business Week,2003

2. the 12-month U.S. dollar denominated LIBOR rate as of June 30 of the current year; Financial Firm Dummy = 1 if the firm is in SIC 6000-6799, else 0; Percent with Dual Class Stock: the percent of package for firms with classes of common stock with equal rights to cash flows but with unequal voting rights;Firm Credit Rating: S &P long-term domestic issuer credit rating from Compustat

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