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16 novembre 2016
- handle: 10670/1.ty5zjv
- hal: hal-01970759
http://hal.archives-ouvertes.fr/licences/copyright/
Mots-clés
Government Customers Loan Contract Terms G - Financial Economics/G.G3 - Corporate Finance and Governance/G.G3.G32 - Financing Policy • Financial Risk and Risk Management • Capital and Ownership Structure • Value of Firms • Goodwill G - Financial Economics/G.G3 - Corporate Finance and Governance/G.G3.G38 - Government Policy and RegulationSujets proches
Political thought Government Political theory Civil government Commonwealth, The Science, Political Administration PoliticsCiter ce document
Daniel Cohen et al., « Major Government Customers and Loan Contract Terms », HAL-SHS : droit et gestion, ID : 10670/1.ty5zjv
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Résumé
This study examines how a firm’s business relationship with the U.S. government, in particular, sales to the government, impacts its loan contract terms and how the effect is different from that of major corporate customers. We find that firms with major government customers have a lower number of covenants and are less likely to have performance pricing provisions in their loan contracts than other firms, whereas major corporate customers do not have such impacts. We do not find evidence that major government customers affect the supplier firm’s loan spread, security, or maturity. We conjecture that lenders benefit from the strict monitoring activities of the government customer and reduce the use of covenants and performance pricing in loan contracts when the borrowing firm has a government customer.