This article explores the advantages of covenant-keeping among the Yoruba people using them as models to be emulated in the contemporary Nigerian society. It aims at using the findings as a leverage to address the evils of corruption, abuse of office, oppression and money laundering prevalent in the country. A quick reflection on the socio-political and economic scenes in Nigeria shows a situat...

Empirical and survey evidence suggests that firms often manipulate reported numbers to avoid debt covenant violations. The theoretical literature on debt contracting, by and large, has ignored the borrower ability to manipulate financial reports. Building upon a standard debt financing setting with continuation decisions based on reported signals, we study the effect of the borrower’s ability t...