Pricing of innate and discretionary accruals in Australian debt

Accounting and Finance

Volumn 53, Issue 1, 2013, Pages 31-53

  Aldamen, Husam ^a   Duncan, Keith ^b  

^a QATAR UNIVERSITY   (Qatar)

^b BOND UNIVERSITY   (Australia)

Author keywords

Discretionary accruals and debt pricing; Information risk; Innate accruals

Indexed keywords

EID: 84875369812     PISSN: 08105391     EISSN: 1467629X     Source Type: Journal    
DOI: 10.1111/j.1467-629X.2011.00458.x     Document Type: Article

References (40)

1. Aldamen, H., 2010, The association between corporate governance, risk assessment and debt contracting, Unpublished (Bond University, Gold Coast).
2. Aldamen, H., and K. Duncan, 2011, Does adopting good corporate governance impact the cost of intermediated and non-intermediated debt?Accounting and Finance52, 49-76.
3. Aldamen, H., K. Duncan, S. Kelly, R. McNamara, and S. Nagel, 2011, Audit committee characteristics and firm performance during the Global Financial Crisis, Accounting and Finance52, 971-1000.
4. Aldamen, H., K. Duncan, and S. Khan, 2012, Governance-Default Risk Relationship and the Demand for Intermediated and Non-Intermediated Debt, The Australasian Accounting Business and Finance Journal6, 25-42.
5. Anderson, R. C., S. A. Mansi, and D. M. Reeb, 2004, Board characteristics, accounting report integrity, and the cost of debt, Journal of Accounting and Economics37, 315-342.
6. Armstrong, C. S., W. R. Guay, and J. P. Weber, 2010, The role of information and financial reporting in corporate governance and debt contracting, Journal of Accounting and Economics50, 179-234.
7. Ashbaugh-Skaife, H., D. Collins, and R. LaFond, 2006, The effects of corporate governance on firms' credit ratings, Journal of Accounting and Economics42, 203-243.
8. Bhojraj, S., and P. Sengupta, 2003, Effect of corporate governance on bond ratings and yields: The role of institutional investors and outside directors, Journal of Business76, 455-475.
9. Boubakri, N., and H. Ghouma, 2006, The impact of internal and external governance on debt financing costs and ratings: international evidence, Les Cahiers du CREF Available from URL: http://www.gresi-cetai.hec.ca/cref/pdf/c-07-03e.pdf.
10. Bougheas, S., P. Mizen, and Y. Yalcin, 2006, Access to external finance: Theory and evidence on the impact of monetary policy and firm-specific characteristics, Journal of Banking and Finance30, 199-227.
11. Brown, P., W. Beekes, and P. Verhoeven, 2011, Corporate governance, accounting and finance: A review, Accounting and Finance51, 96-172.
12. Bugshan, T., 2005, Corporate governance, earnings management, and the information content of accounting earnings: theoretical model and empirical tests, Unpublished PhD (Bond University, Gold Coast).
13. Byun, H.-Y., 2007, The cost of debt capital and corporate governance practices, Asia-Pacific Journal of Financial Studies36, 765-806.
14. Dechow, P., and I. Dichev, 2002, The quality of accruals and earnings: the role of accrual estimation errors, The Accounting Review77, 35-59.
15. Dechow, P., W. Ge, and C. Schrand, 2010, Understanding earnings quality: A review of the proxies, their determinants and their consequences, Journal of Accounting and Economics50, 344-401.
16. Denis, D. J., and V. T. Mihov, 2003, The choice among bank debt, non-bank private debt, and public debt: evidence from new corporate borrowings, Journal of Financial Economics70, 3-28.
17. Easley, D., and M. O'Hara, 2004, Information and the cost of capital, The Journal of Finance59, 1553-1583.
18. Financial Reporting Council (FRC), 2002, Adoption of International Accounting Standards by 2005. [Cited 15 June 2011]. Available from URL: http://www.frc.gov.au/bulletins/2002/04.asp.
19. Francis, J., R. LaFond, P. Olssona, and K. Schipper, 2004, Costs of equity and earnings attributes, The Accounting Review79, 967-1010.
20. Francis, J., R. LaFond, P. Olssona, and K. Schipper, 2005, The market pricing of accruals quality, Journal of Accounting and Economics39, 295-327.
21. Gray, P., P. S. Koh, and Y. H. Tong, 2009, Accruals quality, information risk and cost of capital: Evidence from Australia, Journal of Business Finance & Accounting36, 51-72.
22. Guay, W., S. P. Kothari, and R. Watts, 1996, A market-based evaluation of discretionary accrual models, Journal of Accounting Research34, 83-105.
23. Kent, P., J. Routledge, and J. Stewart, 2010, Innate and discretionary accruals quality and corporate governance, Accounting and Finance50, 171-195.
24. Klock, M. S., S. A. Mansi, and W. R. Maxwell, 2005, Does corporate governance matter to bondholders?, Journal of Financial and Quantitative Analysis40, 693-719.
25. Lambert, R., C. Leuz, and R. Verrecchia, 2007, Accounting information, disclosure, and the cost of capital, Journal of Accounting Research45, 385-420.
26. Lambert, R., C. Leuz, and R. Verrecchia, 2009, Information asymmetry, information precision, and the cost of capital, National Bureau of Economic Research (NBER) Working Paper No. 14881
27. Larcker, D. F., S. A. Richardson, and I. A. Tuna, 2007, Corporate governance, accounting outcomes, and organizational performance, The Accounting Review82, 963-1008.
28. Mansi, S. A., W. F. Maxwell, and D. P. Miller, 2004, Does auditor quality and tenure matter to investors? Evidence from the bond market, Journal of Accounting Research42, 755-793.
29. McDonald, C. L., 1973, An empirical examination of the reliability of published predictions of future earnings, The Accounting Review48, 502-510.
30. McNichols, M., 2002, Discussion of The quality of accruals and earnings: the role of accrual estimation errors, The Accounting Review77, 61-69.
31. Nikolaev, V., and L. Van Lent, 2005, The endogeneity bias in the relation between cost-of-debt capital and corporate disclosure policy, European Accounting Review14, 677-724.
32. Piot, C., and F. Missonier-Piera, 2009, Corporate Governance Reform and the Cost of Debt Financing of Listed French Companies. [Cited 26 August 2011]. Available from URL: http://ssrn.com/paper=960681.
33. Pittman, J. A., and S. Fortin, 2004, Auditor choice and the cost of debt capital for newly public firms, Journal of Accounting and Economics37, 113-1136.
34. Reserve Bank of Australia, 2005, How do Australian businesses raise debt?, Financial Stability Review Available from URL: http://www.rba.gov.au/publications/fsr/2005/mar/pdf/0305-1.pdf.
35. Reserve Bank of Australia, 2011a, D7 bank lending to business - total credit outstanding by size and by sector, Money and Credit Statistics Available from URL: http://www.rba.gov.au/statistics/tables/xls/d07dhist.xls?accessed=0910-11:04:37.
36. Reserve Bank of Australia, 2011b, D8 bank lending to business - selected statistics, Money and Credit Statistics Available from URL: http://www.rba.gov.au/statistics/tables/xls/d08hist.xls?accessed=0910-11:04:37.
37. Sengupta, P., 1998, Corporate disclosure quality and the cost of debt, The Accounting Review73, 459-474.
38. Shaw, K., 2011, CEO incentives and the cost of debt, Review of Quantitative Finance and Accounting, 1-24. [Cited 26 August 2011]. Available from URL: http://dx.doi.org/10.1007/s11156-011-0230-7.
39. Subramanyam, K., 1996, The Pricing of discretionary accruals, Journal of Accounting and Economics22, 249-281.
40. Wu, Y., C. Gaunt, and S. Gray, 2010, A comparison of alternative bankruptcy prediction models, Journal of Contemporary Accounting and Economics6, 34-45.