On the value of restrictive covenants: an empirical investigation of public bond issues. <...> An analysis of bond covenants // Journal of financial economics. <...> Covenants and collateral in Japanese corporate straight bonds: choice Finance and credit ISSN 2311-8709 (Online) ISSN 2071-4688 (Print) THE INFLUENCE OF COVENANT PROTECTION ON YIELD OF CORPORATE BONDS Anna N. ZADOROZHNAYA Abstract The article presents the results of empirical study of how covenant protection affects the cost of debt. <...> Covenants can mitigate risk-shifting problem in agency conflicts, but also they may influence on corporate financial policy by reducing the cost of debt. <...> The aim of the study is to test the costly contracting hypothesis (CCH) both in domestic corporate bond market and in Eurobond market. <...> The sample is formed by data for 200 Russian public nonfinancial companies that place bonds both in domestic and Eurobond market during 2008–2013. <...> The obtained research results demonstrate that a negative relation between offering yield and the presence of covenants which is consistent with the costly contracting hypothesis (CCH) is registered only in Eurobond market. <...> Covenant provisions included in indenture agreements should be tailored to take into account firms’ and issues’ characteristics. <...> Analysis of covenant protection contained in bond indentures could be included as a criteria in credit rating assessment. <...> Keywords: agency theory, debtholder-shareholder conflict, covenants, costly contracting hypothesis Финансы и кредит References 1. <...> The Covenant Threshold in Public and Private Debt. <...> How to increase the efficiency of bond covenants: a proposal for the Italian corporate market. <...> Growth opportunities and the choice of <...>