In Europe, why do most bank loans include restrictions on dividend payments during the amortization of the

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In Europe, why do most bank loans include restrictions on dividend payments during the amortization of the loans? Is this restriction appropriate in the case of small firms?

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Foundations Of Finance

ISBN: 9781292155135

9th Global Edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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Question Posted: Feb 21, 2024 05:01 AM

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In Europe, why do most bank loans include restrictions on dividend payments during the amortization of the

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Restrictions on dividend payments often referred to as dividend covenants are commonly included in bank loan agreements across Europe and other regions These restrictions are designed to protect the i...View the full answer

Foundations Of Finance

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