The DOI matches its Crossref record; 29 of the 29 references it cites were found in a registry or an index.
Growth Opportunities and the Choice of Leverage, Debt Maturity, and Covenants
Abstract
We investigate the effect of growth opportunities in a firm's investment opportunity set on its joint choice of leverage, debt maturity, and covenants. Using a database that contains detailed debt covenant information, we provide large‐sample evidence of the incidence of covenants in public debt and construct firm‐level indices of bondholder covenant protection. We find that covenant protection is increasing in growth opportunities, debt maturity, and leverage. We also document that the negative relation between leverage and growth opportunities is significantly attenuated by covenant protection, suggesting that covenants can mitigate the agency costs of debt for high growth firms.
Overview
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Integrity signals
Registry
Cites
Statistics
Verification
Claims the paper makes
The claims and statistics of this paper haven’t been checked yet.
Run the check — free, no account needed. It reads the open-access text and checks the sources it cites.
Self-check
Percentages, sums and reported differences re-computed from the paper’s own numbers.
The self-check needs the paper’s full text.
Citations
Cites
Theory of the firm: Managerial behavior, agency costs and ownership structure
Jensen, M. C., & Meckling, W. H. (1976) · Journal of Financial Economics · doi:10.1016/0304-405x(76)90026-x · Cited by 71,491
Determinants of corporate borrowing
Myers, S. C. (1977) · Journal of Financial Economics · doi:10.1016/0304-405x(77)90015-0 · Cited by 13,169
What Do We Know about Capital Structure? Some Evidence from International Data
RAJAN, R. G., & ZINGALES, L. (1995) · The Journal of Finance · doi:10.1111/j.1540-6261.1995.tb05184.x · Cited by 6,538
Kennedy, P. (1979) · Cited by 4,340
Market Timing and Capital Structure
Baker, M., & Wurgler, J. (2002) · The Journal of Finance · doi:10.1111/1540-6261.00414 · Cited by 3,672
Smith, C. W., & Warner, J. B. (1979) · Journal of Financial Economics · doi:10.1016/0304-405x(79)90011-4 · Cited by 2,894
The Maturity Structure of Corporate Debt
BARCLAY, M. J., & SMITH, C. W. (1995) · The Journal of Finance · doi:10.1111/j.1540-6261.1995.tb04797.x · Cited by 1,850
Debt Maturity Structure and Liquidity Risk
Diamond, D. W. (1991) · The Quarterly Journal of Economics · doi:10.2307/2937924 · Cited by 1,801
Large–Sample Evidence on the Debt Covenant Hypothesis
Dichev, I. D., & Skinner, D. J. (2002) · Journal of Accounting Research · doi:10.1111/1475-679x.00083 · Cited by 1,088
Investment–Cash Flow Sensitivities: Constrained versus Unconstrained Firms
MOYEN, N. (2004) · The Journal of Finance · doi:10.1111/j.1540-6261.2004.00692.x · Cited by 1,041
Cited by
A Review of Empirical Capital Structure Research and Directions for the Future
Graham, J. R., & Leary, M. T. (2011) · Annual Review of Financial Economics · doi:10.1146/annurev-financial-102710-144821 · Cited by 547
Trust, social capital, and the bond market benefits of ESG performance
Amiraslani, H., Lins, K. V., Servaes, H., & Tamayo, A. (2023) · Review of Accounting Studies · doi:10.1007/s11142-021-09646-0 · Cited by 222
Metadata
- Authors
- BILLETT, M. T., KING, T. D., & MAUER, D. C.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 2007-03-20
- Volume
- 62
- Issue
- 2
- Pages
- 697-730
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W2159522238
- Cited by
- 760
- References
- 29
- FWCI
- 122.03
- Type
- journal article
- Language
- en
- Open access
- closed
About these checks
Registry, retraction, Cites and statistics results are computed, not judged, with one exception: a printed reference that no index lists is read once by a model before it counts as a citation error. Claims are extracted by a model and kept only when their quote appears verbatim in the text; each cited source is then checked, with a model’s help, for whether it says what the claim relies on. Those verdicts can be wrong — read the claim’s quote and the cited source before relying on one.
Statistics and arithmetic are recomputed, not judged.
Confidence bands are shown only for fields calibrated on our annotated test set. None is calibrated yet, so no band is shown.
What counts as a claim ›How we measure confidence ›How we check this ›
Are you an author, or do you see a problem with this page? Request a review
How to cite
Cite CoChat for the checks on this page, and the paper for its own findings.
- This page
- CoChat. (2026). Citation check: Growth Opportunities and the Choice of Leverage, Debt Maturity, and Covenants. https://app.cochat.ai/papers/10.1111/j.1540-6261.2007.01221.x
- The paper
- BILLETT, M. T., KING, T. D., & MAUER, D. C. (2007). Growth Opportunities and the Choice of Leverage, Debt Maturity, and Covenants. The Journal of Finance. https://doi.org/10.1111/j.1540-6261.2007.01221.x
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
