Bank relationships and the value relevance of the income statement: Evidence from income-statement conservatism

Journal of Business Finance and Accounting

Volumn 34, Issue 7-8, 2007, Pages 1051-1072

  Choi, Wooseok ^a,b  

^a Korea University   (South Korea)

^b Korea University   (South Korea)

Author keywords

Bank relationships; Debt financing; Income statement conservatism; Value relevance

Indexed keywords

EID: 35148836011     PISSN: 0306686X     EISSN: 14685957     Source Type: Journal    
DOI: 10.1111/j.1468-5957.2007.02023.x     Document Type: Article

References (33)

1. Ahmed, A., B. Billings, R. Morton and M. Stanford-Harris (2002 The Role of Accounting Conservatism in Mitigating Bondholder-shareholder Conflicts Over Dividend Policy and in Reducing Debt Costs The Accounting Review, Vol. 77, pp. 867 90.
2. Altman, E. (1968 Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy Journal of Finance, Vol. 23, pp. 589 609.
3. Ball, R. and L. Shivakumar (2005 Earnings Quality in UK Private Firms: Comparative Loss Recognition Timeliness Journal of Accounting and Economics, Vol. 39, pp. 83 128.
4. Ball, R. and L. Shivakumar (2006 The Role of Accruals in Asymmetrically Timely Gain and Loss Recognition Journal of Accounting Research, Vol. 44, pp. 207 42.
5. Barth, M., W. Beaver and W. Landsman (1998 Relative Valuation Roles of Equity Book Value and Net Income as a Function of Financial Health Journal of Accounting and Economics, Vol. 25, pp. 1 34.
6. Basu, S. (1997 The Conservatism Principle and the Asymmetric Timeliness of Earnings Journal of Accounting and Economics, Vol. 24, pp. 3 37.
7. Berger, A. and G. Udell (1995 Relationship Lending and Lines of Credit in Small Firm Finance Journal of Business, Vol. 68, pp. 351 81.
8. Bester, H. (1985 Screening vs. Rationing in Credit Markets with Imperfect Information American Economic Review, Vol. 75, pp. 850 55.
9. Burgstahler, D. and I. Dichev (1997 Earnings, Adaptation and Equity Value The Accounting Review, Vol. 72, pp. 187 215.
10. Cole, R., J. Wolken and D. Woodburn (1996 Bank and Nonbank Competition for Small Business Credit: Evidence from the 1987 and 1993 National Survey of Small Business Finances Federal Reserve Bulletin, Vol. 82, pp. 983 95.
11. Collins, D., M. Pincus and H. Xie (1999 Equity Valuation and Negative Earnings: The Role of Book Value of Equity The Accounting Review, Vol. 74, pp. 29 61.
12. Dahiya, S., A. Saunder and A. Srinivasan (2003 Financial Distress and Bank Lending Relationships Journal of Finance, Vol. 58, pp. 375 399.
13. Diamond, D. (1984 Financial Intermediation and Delegated Monitoring Review of Financial Studies, Vol. 51, pp. 393 414.
14. Diamond, D. (1991 Monitoring and Reputation: The Choice Between Bank Loans and Directly Placed Debt Journal of Political Economy, Vol. 99, pp. 689 721.
15. Dichev, I. and D. Skinner 2002 Large-sample Evidence on the Debt Covenant Hypothesis Journal of Accounting Research, Vol. 40, pp. 1091 123.
16. Fama, E. (1985 What's Different About Banks? Journal of Monetary Economics, Vol. 15, pp. 29 36.
17. Fraser, D., B. Gup and J. Kolari (2001 Commercial Banking: The Management of Risk (South-Western College Publishing, a division of Thomson Learning, Cincinnati, Ohio).
18. Freixas, X. and J. Rochet (1997 Microeconomics of Banking (MIT Press, Cambridge, MA).
19. Gilson, S., K. John and L. Lang (1990 Troubled Debt Restructuring: An Empirical Study of Private Reorganization of Firms in Default Journal of Financial Economics, Vol. 27, pp. 315 53.
20. Hayn, C. (1995 The Information Content of Losses Journal of Accounting and Economics, Vol. 20, pp. 125 53.
21. Holthausen, R. and R. Watts (2001 The Relevance of the Value-relevance Literature for Financial Accounting Standard Setting Journal of Accounting and Economics, Vol. 31, pp. 3 75.
22. Hoshi, T., A. Kashyap and D. Scharfstein (1990 The Role of Banks in Reducing the Costs of Financial Distress in Japan Journal of Financial Economics, Vol. 27. pp. 67 88.
23. Kang, J., A. Shivdasani and T. Yamada (2000 The Effect of Bank Relationships on Investment Decisions: An Investigation of Japanese Takeover Bids Journal of Finance, Vol. 55, pp. 2197 218.
24. Kashyap, A., R. Rajan and J. Stein (2002 Banks as Liquidity Providers: An Explanation for the Coexistence of Lending and Deposit-taking Journal of Finance, Vol. 57, pp. 33 73.
25. Leftwich, R. (1983 Accounting Information in Private Markets: Evidence from Private Lending Agreements The Accounting Review, Vol. 58, pp. 23 42.
26. Lev, B. and P. Zarowin (1999 The Boundaries of Financial Reporting and How to Extend Them Journal of Accounting Research, Vol. 37, pp. 353 85.
27. Milgrom, P. and J. Roberts (1992 Economics, Organization & Management (Prentice-Hall, Englewood Cliffs, NJ).
28. Petersen, M. and R. Rajan (1994 The Benefits of Lending Relationships: Evidence from Small Business Data Journal of Finance, Vol. 49, pp. 3 37.
29. Saidenberg, M. and P. Strahan (1999 Are Banks Still Important for Financing Large Businesses? Current Issues in Economics and Finance (August, Federal Reserve Bank of New York).
30. Shaffer, S. (1998 The Winner's Curse in Banking Journal of Financial Intermediation, Vol. 7, pp. 359 92.
31. Stiglitz, J. and A. Weiss (1981 Credit Rationing in Markets with Imperfect Information American Economic Review, Vol. 71, pp. 393 410.
32. Watts, R. (2003a Conservatism in Accounting Part I: Explanation and Implications Accounting Horizon, Vol. 17, pp. 207 21.
33. Watts, R. (2003b Conservatism in Accounting Part II: Evidence and Research Opportunities Accounting Horizon, Vol. 17, pp. 287 301.