Do IFRS reconciliations convey information? the effect of debt contracting

Journal of Accounting Research

Volumn 47, Issue 5, 2009, Pages 1167-1199

  Christensen, Hans B ^a   Lee, Edward ^b   Walker, Martin ^b  

^a UNIVERSITY OF CHICAGO   (United States)

^b UNIVERSITY OF MANCHESTER   (United Kingdom)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 70350009789     PISSN: 00218456     EISSN: 1475679X     Source Type: Journal    
DOI: 10.1111/j.1475-679X.2009.00345.x     Document Type: Article

References (28)

1. Amir, E. T. S. Harris and E. K. Venuti A Comparison of the Value-Relevance of U.S. versus Non-U.S. GAAP Accounting Measures Using Form 20-F Reconciliations Journal of Accounting Research 31 (1993 230 264.
2. Arens, A. A., and J. K. Loebbecke. Auditing an Integrated Approach. Scarborough, Ontario : Prentice Hall of Canada Ltd., 2000.
3. Barth, M. E. W. R. Landsman and M. H. Lang International Accounting Standards and Accounting Quality Journal of Accounting Research 46 (2008 467 498.
4. Basu, S. The Conservatism Principle and the Asymmetric Timeliness of Earnings Journal of Accounting and Economics 24 (1997 3 37.
5. Beatty, A. K. Ramesh and J. Weber The Importance of Accounting Changes in Debt Contracts: The Cost of Flexibility in Covenant Calculations Journal of Accounting and Economics 33 (2002 205 227.
6. Bharath, S. T. J. Sunder and S. V. Sunder Accounting Quality and Debt Contracting Accounting Review 83 (2008 1 28.
7. Christensen, H. B. E. Lee and M. Walker Cross-Sectional Variation in the Economic Consequences of International Accounting Harmonization: The Case of Mandatory IFRS Adoption in the UK International Journal of Accounting 42 (2007 341 379.
8. Citron, D. B. Accounting Measurement Rules in UK Bank Loan Contracts Accounting and Business Research 23 (1992 21 30.
9. Core, J. E., and C. M. Schrand The Effect of Accounting-Based Debt Covenants on Equity Valuation Journal of Accounting and Economics 27 (1999 1 34.
10. Daske, H. L. Hail C. Leuz and R. Verdi Mandatory IFRS Reporting Around the World: Early Evidence on the Economic Consequences Journal of Accounting Research 46 (2008 1085 1042.
11. Day, J. F. S., and P. J. Taylor Loan Contracting by UK Corporate Borrowers Journal of International Banking Law (1996 318 325.
12. Dichev, I. D., and D. J. Skinner Large Sample Evidence on the Debt Covenant Hypothesis Journal of Accounting Research 40 (2002 1091 1123.
13. El-Gazzar, S. M. Stock Market Effects of the Closeness to Debt Covenant Restrictions Resulting from Capitalization of Leases Accounting Review 68 (1993 258 272.
14. Gordon, E. A. B. N. Jorgensen and C. L. Linthicum Are IFRS - U.S. GAAP Reconciliations Informative Working paper, Rutgers University, Columbia University, and University of Texas, 2007.
15. Heckman, J. J. Sample Selection Bias as a Specification Error Econometrica 47 (1979 153 161.
16. Holthausen, R. W., and R. Leftwich The Economic Consequences of Accounting Choice Journal of Accounting and Economics 5 (1983 77 117.
17. Horton, J., and G. Serafeim Market Reaction to and Valuation of Reconciliation Adjustments: First Evidence from the UK Working paper, London School of Economics, 2008.
18. JCF Group The Consequences of IFRS for Stock Markets JCF Outlook - October 2004. London : JCF Group, 2004.
19. Lang, M., and R. Lundholm Cross-Sectional Determinants of Analyst Ratings of Corporate Disclosures Journal of Accounting Research 31 (1993 246 271.
20. Leftwich, R. Accounting Information in Private Markets: Evidence from Private Lending Agreements Accounting Review 58 (1983 23 42.
21. Lys, T. Mandated Accounting Changes and Debt Covenants: The Case of Oil and Gas Accounting Journal of Accounting and Economics 6 (1984 39 65.
22. Moir, L., and S. Sudarsanam Determinants of Financial Covenants and Pricing of Debt in Private Debt Contracts: The UK Evidence Accounting and Business Research 37 (2007 151 166.
23. Myers, S. C. Determinants of Corporate Borrowing Journal of Financial Economics 5 (1977 147 175.
24. Pae, J. D. B. Thornton and M. Welker. The Reduction of Firms' Ownership Induced Agency Costs Following Financial Reporting Reform in the European Union. SSRN, 2006. Web site, http://papers.ssrn.com/sol3/papers.cfm?abstract-id= 873607.
25. Pope, P. F. Discussion of a Comparison of the Value-Relevance of U.S. Versus Non-U.S. GAAP Accounting Measures Using 20-F Reconciliations Journal of Accounting Research 31 (Supplement 1993 265 275.
26. Rees, L., and P. Elgers The Market's Valuation of Nonreported Accounting Measures: Retrospective Reconciliations of Non-U.S. and U.S. GAAP Journal of Accounting Research 35 (1997 115 127.
27. Sengupta, P. Disclosure Timing: Determinants of Quarterly Earnings Release Dates Journal of Accounting and Public Policy 23 (2004 457 482.
28. White, H. A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity Econometrica 48 (1980 817 838.