Financial contracting under extreme uncertainty: an analysis of Brazilian corporate debentures

• 成果类型: Article
• 署名作者: Anderson, CW
• 署名单位: University of Missouri System; University of Missouri Columbia
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/S0304-405X(98)00043-9
• 发表日期: 1999
• 页码: 45-84
• 关键词: Contracting; debt structure; covenants; institutions; Emerging markets; BRAZIL

摘要

Economic volatility, high transaction costs, and fragile institutions hinder financial contracting in emerging markets. These conditions characterize the economy of Brazil, yet a nascent corporate bond marker thrives. I analyze 50 Brazilian indenture agreements and find that sample debentures are characterized by (i) features that mitigate inflation risk for investors, (ii) contingent-maturity mechanisms that provide periodic opportunities for exit or renegotiation, (iii) a paucity of covenants that restrict the debtor's investment, financing, and dividend decisions, and(iv) self-enforcement mechanisms that avoid reliance on inefficient institutions. Analysis of these features enhances our understanding of contracting in emerging economies. (C) 1999 Elsevier Science S.A. All rights reserved.