Author Archives: Matt Kubic

Measurement Error when Estimating Covenant Violations

By | December 7, 2021

Corporate syndicated loan contracts frequently include financial covenants, namely provisions that require a borrowing corporation to periodically achieve specified accounting-based performance objectives or maintain specified accounting-based capital requirements. Practitioners, academics, and policymakers are interested in these provisions because they mitigate costly agency frictions that arise between borrowers and lenders, thereby enhancing the flow of capital… Read More »

SEC Effort to Regulate State Sponsors of Terrorism (SST) Disclosure

By | April 9, 2021

The SEC Division of Corporation Finance (DCF) reviews financial filings of publicly traded corporations to ensure compliance with accounting standards and disclosure requirements.  If the SEC has any questions after reviewing the financial reports, the SEC will send a comment letter asking about perceived deficiencies.  Firm responses to SEC inquiries vary from simply answering questions posed via a response letter to amending their financial reports. … Read More »