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The economic significance of the actions allowed by these clauses and the market-wide price reaction that followed the 2017 J.Crew restructuring, a high-profile use of such contractual elements, support this interpretation. Leveraged buyouts, large transactions, and nonbank funding are conducive to weaker contractual terms for credit agreements.<\/jats:p>\n                  <jats:p>This paper was accepted by Will Cong, finance.<\/jats:p>\n                  <jats:p>Supplemental Material: The online appendix and data files are available at https:\/\/doi.org\/10.1287\/mnsc.2023.01496 .<\/jats:p>","DOI":"10.1287\/mnsc.2023.01496","type":"journal-article","created":{"date-parts":[[2025,4,15]],"date-time":"2025-04-15T10:44:54Z","timestamp":1744713894000},"page":"9998-10021","source":"Crossref","is-referenced-by-count":2,"title":["Weak Credit Covenants"],"prefix":"10.1287","volume":"71","author":[{"given":"Victoria","family":"Ivashina","sequence":"first","affiliation":[{"name":"Harvard Business School, Harvard University, Boston, Massachusetts 02163; and National Bureau of Economic Research, Cambridge, Massachusetts 02138"}]},{"ORCID":"https:\/\/orcid.org\/0009-0003-8236-5328","authenticated-orcid":false,"given":"Boris","family":"Vall\u00e9e","sequence":"additional","affiliation":[{"name":"Harvard Business School, Harvard University, Boston, Massachusetts 02163"}]}],"member":"109","reference":[{"key":"B1","doi-asserted-by":"publisher","DOI":"10.1111\/jofi.12082"},{"key":"B2","doi-asserted-by":"crossref","unstructured":"Ayotte K, Badawi A (2022) Loopholes in complex contracts. 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