Conservatism and Debt

Journal of Accounting and Economics

Volumn 45, Issue 2-3, 2008, Pages 154-174

  Beatty, Anne ^a   Weber, Joseph ^b   Yu, Jeff Jiewei ^b  

^a OHIO STATE UNIVERSITY   (United States)

^b MASSACHUSETTS INSTITUTE OF TECHNOLOGY   (United States)

Author keywords

Conservatism; Covenants; Debt Contracting

Indexed keywords

EID: 46049087707     PISSN: 01654101     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jacceco.2008.04.005     Document Type: Article

References (37)

1. Ahmed A., Billings B., Morton R., and Stanford-Harris M. The role of accounting conservatism in mitigating bondholder-shareholder conflicts over dividend policy and reducing debt costs. The Accounting Review 77 4 (2002) 867-890
2. Asquith P., Beatty A., and Weber J. Performance pricing in bank debt contracts. Journal of Accounting and Economics 40 1 (2005) 101-128
3. Ball R., and Shivakumar L. Earnings quality in UK private firms: comparative loss recognition timeliness. Journal of Accounting and Economics 39 1 (2005) 83-128
4. Barth M., Hodder L., and Stubben S. Fair value accounting for liabilities and own credit risk. The Accounting Review 83 3 (2008) 629-644
5. Basu S. The conservatism principle and the asymmetric timeliness of earnings. Journal of Accounting and Economics 25 1 (1997) 1-34
6. Beatty A., Ramesh K., and Weber J. The importance of accounting changes in debt contracts: the cost of flexibility in covenant calculations. Journal of Accounting and Economics 33 2 (2002) 173-204
7. Beaver W., and Ryan S. Biases and lags in book values and their effects on the ability of book-to-market ratio to predict book return on equity. Journal of Accounting Research 38 1 (2000) 127-148
8. Beneish M., and Press E. Costs of technical violation of accounting-based debt covenants. The Accounting Review 68 (1993) 233-257
9. Bharath S.T., Sunder J., and Sunder S. Accounting quality and debt contracting. The Accounting Review 83 1 (2008) 1-28
10. Demiroglu, C., James, C., 2007. The information content of bank loan covenants. Working Paper, University of Florida.
11. Dichev I.D., and Skinner D.J. Large-sample evidence on the debt covenant hypothesis. Journal of Accounting Research 40 4 (2002) 1091-1123
12. El-Gazzar S., and Pastena V. Factors affecting the scope and initial tightness of covenant restrictions in private lending agreements. Contemporary Accounting Research 8 (1991) 132-151
13. Fin T., and Schmidt P. A test of the Tobit specification against an alternative suggested by Cragg. Review of Economics and Statistics 66 (1984) 174-177
14. Flannery M. Asymmetric information and risky debt maturity choice. Journal of Finance 41 (1986) 19-37
15. Frankel, R., Roychowdhury, S., 2006. Testing the clientele effect: an explanation for non-GAAP earnings adjustments used to compute I/B/E/S earnings. Working Paper, M.I.T.
16. Frankel, R., Seethamraju, C., Zach, T., 2006. GAAP Goodwill and debt contracting efficiency: evidence from net-worth covenants. Working paper, Washington University.
17. Franzen, K., Rodgers, X., Simin, T., 2005. The effect of accounting conservatism on measures of distress risk. Working Paper, N.Y.U.
18. Givoly D., and Hayn C. The changing time-series properties of earnings, cash flows and accruals: has financial reporting become more conservative?. Journal of Accounting and Economics 29 3 (2000) 287-320
19. Givoly, D., Hayn, C., Natarajan, A., 2006. Measuring reporting conservatism. Working Paper, UCLA.
20. Graham J. Proxies for the corporate marginal tax rate. Journal of Financial Economics 42 (1996) 187-221
21. Greene W. Econometric Analysis. fourth ed (2000), Prentice-Hall, Upper Saddle River, NJ
22. Guay W., and Verrecchia R. Discussion of an economic framework for conservative accounting by Bushman and Piotroski (2006). Journal of Accounting and Economics 42 (2006) 149-165
23. Hart O. Firm Contracts and Financial Structure (1995), Oxford University Press
24. Holthausen R., and Watts R. The relevance of value relevance literature for financial accounting standard setting. Journal of Accounting and Economics 31 (2001) 3-75
25. Khan, M., Watts, R., 2007. Estimation and validation of a firm-year measure of conservatism. Working Paper, M.I.T.
26. LaFond, R., Roychowdhury, S., 2007. Managerial ownership and accounting conservatism. Working Paper, M.I.T.
27. LaFond R., and Watts R. The information role of conservatism. The Accounting Review 83 2 (2008) 447-478
28. Leftwich R. Accounting information in private markets: evidence from private lending agreements. Accounting Review 58 (1983) 23-42
29. Moerman, R., 2006. The role of information asymmetry and financial reporting quality in debt contracting: evidence from the secondary loan market. Working Paper, University of Chicago.
30. Myers S. Determinants of corporate borrowing. Journal of Financial Economics 5 November (1977) 147-176
31. Peek, E., Cuijpers, R., Buijink, W., 2006. Creditors' demand for accounting conservatism in public versus private firms: evidence from Europe. Working Paper, SSRN.
32. Ryan S. Identifying conditional conservatism. European Accounting Review 15 4 (2006) 511-525
33. Schipper K. Fair Values in Financial Reporting (2005). 〈http://fars.org/2005AAAFairValueKSchipper.pdf〉
34. Smith C., and Warner J. On financial contracting: an analysis of bond covenants. Journal of Financial Economics 7 (1979) 117-161
35. Sweeny A. Debt covenant violations and managers' accounting responses. Journal of Accounting and Economics 17 (1994) 281-308
36. Watts R. Conservatism in accounting. Part I: Explanations and implications. Accounting Horizons 17 3 (2003) 207-221
37. Zhang J. The contracting benefits of accounting conservatism to lenders and borrowers. Journal of Accounting and Economics 45 1 (2008) 27-54