This section tests more extensively

This section tests more extensively the possibility that the lower covenant intensity for exclusive relationships is related to a reduction in information asymmetries. These tests use interactions of relationship intensity with dummy variables that indicate whether the borrower’s total assets are below the sample median during the start year of the loan, whether the borrower’s stock is a member of the S&P 500 index, whether the borrower is a high tech firm ( Loughran and Ritter, 2004 ), whether the number of analysts following the borrower’s stock is below the sample median for that year, whether the dispersion of analyst forecasts for the borrower’s earnings per share is above the median, and whether the borrower is listed on Nasdaq as opposed to NYSE or Amex.