Year of Graduation
The Effect of Liquidity and Solvency of the Issuer on the use of Covenants in Prospectuses of Corporate Bonds in BRISC Countries
The work analyzes the benefits and costs associated with the use of covenants in bond issue prospectuses. A sample of 225 public bond issues of issuers from the BRICS countries revealed a significant solvency impact on the use of different types of covenants. Solvency shows the adequacy of the company's cash flow to repay its long-term obligations.