What happens when CEOs are shielded by employment and severance agreements? Researchers from Singapore Management University, University of Hong Kong, Boston College, and led by Dr. Xia Chen put forward this critical question.  

The study investigates how CEO contractual protection impacts corporate debt contracting. With insights from a comprehensive analysis of loans from major publicly traded companies, the team explore how these protections can influence CEO behavior, risk-taking, and the financial terms imposed by debt holders.

Read the original research: https://doi.org/10.1111/jbfa.12664