An Empirical Examination of the Relationship between Bond Risk Premiums and Loss Contingency Disclosures

Journal of Accounting, Auditing & Finance

Volumn 12, Issue 2, 1997, Pages 179-198

  Backmon, Ida Robinson ^a   Vickrey, Donn W ^b  

^a NORTH CAROLINA A AND T STATE UNIVERSITY   (United States)

^b UNIVERSITY OF SAN DIEGO   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84998010774     PISSN: 0148558X     EISSN: None     Source Type: Journal    
DOI: 10.1177/0148558X9701200204     Document Type: Article

References (49)

1. Abdel-Khalik A. R., Thompson R. B., Chen R. D. 1981. “Effects on Bond Pricing and on Bond Rating.” In The Economic Effects on Leases of FASB No. 13, A. R. Abdel-khalik, principal researcher, Stamford, Conn.: Financial Accounting Standards Board, 163-191.
2. AICPA. 1991. Accounting Trends and Techniques: Annual Survey of Accounting Practices Followed in 600 Stockholders’ Reports. New York: American Institute of Certified Public Accountants.
3. AICPA. 1992. Accounting Trends and Techniques: Annual Survey of Accounting Practices Followed in 600 Stockholders’ Reports. New York: American Institute of Certified Public Accountants.
4. AICPA. 1993. Accounting Trends and Techniques: Annual Survey of Accounting Practices Followed in 600 Stockholders’ Reports. New York: American Institute of Certified Public Accountants.
5. AICPA. 1995. Proposed Statement of Position: Environmental Remediation Liabilities. New York: American Institute of Certified Public Accountants.
6. Alderman C. W. 1977. “The Role of Uncertainty Qualifications.” Journal of Accountancy (November): 97-100.
7. Auditing Standards Board. 1985. Amendment to Statement on Auditing Standards No. 58, Reports on Audited Financial Statements: Statement on Auditing Standards No. 79. New York: American Institute of Certified Public Accountants.
8. Auditing Standards Board. 1988. Reports on Audited Financial Statements: Statement on Auditing Standards No. 58. New York: American Institute of Certified Public Accountants.
9. Banks D. W. 1985. “Information Uncertainty and Trading Volume.” The Financial Review (February): 83-91.
10. Banks D. W., Kinney W. Jr. 1982. “Loss Contingency Reports and Stock Prices: An Empirical Study.” Journal of Accounting Research (Spring): 240-254.
11. Belsley D. A., Kuh E., Welsch R. E. 1980. Regression Diagnostics. New York: Wiley.
12. Bhagatt S., Marr M. W. 1985. “The Rule 415 Experiment: Equity Markets.” Journal of Finance (December): 1385-1401.
13. Black F., Cox J. C. 1976. “Valuing Corporate Securities: Some Effects of Bond Indenture Provisions.” The Journal of Finance (May): 351-368.
14. Black F., Scholes M. 1973. “The Pricing of Options and Corporate Liabilities.” Journal of Political Economy (May-June): 637-654.
15. Board of Governors of the Federal Reserve System. 1995. “Financial and Business Statistics.” Federal Reserve Bulletin 81 (September): A35.
16. Chewning G., Pany K., Wheeler S. 1989. “Auditor Reporting Decisions Involving Accounting Principle Changes: Some Evidence on Materiality Thresholds.” Journal of Accounting Research (Spring): 78-96.
17. Cook T. Q., Hendershott P. H. 1978. “The Impact of Taxes, Risk and Relative Security Supplies on Interest Rate Differentials.” Journal of Finance (September): 1173-1186.
18. Dodd P., Dopuch N., Holthausen R. W., Leftwich R. W. 1984. “Qualified Audit Opinions and Stock Prices: Information Content, Announcement Dates, and Concurrent Disclosures.” Journal of Accounting and Economics (January): 3-38.
19. Dopuch N., Holthausen R. W., Leftwich R. W. 1987. “Predicting Audit Qualifications with Financial and Market Variables.” The Accounting Review (July): 431-454.
20. Ederington L. 1974. “The Yield Spread on New Issues of Corporate Bonds.” Journal of Finance (December): 1531-1543.
21. FASB. 1975. Accounting for Contingencies: Statement of Financial Accounting Standards No. 5. Stamford, Conn.: Financial Accounting Standards Board.
22. FASB. 1978. Objectives of Financial Reporting by Business Enterprises: Statement of Financial Accounting Concepts No. 1. Stamford, Conn.: Financial Accounting Standards Board.
23. FASB. 1990. Disclosures about Fair Value of Financial Instruments: Statement of Financial Accounting Standards No. 105. Stamford, Conn.: Financial Accounting Standards Board.
24. Finnerty J. E., Oliver T. W. 1985. “The Impact of Qualified Audit Opinions on Systematic Risk.” Advances in Financial Planning and Forecasting 1: 293-305.
25. Fisher L. 1959. “Determinants of Risk Premiums on Corporate Bonds.” Journal of Political Economy (May/June): 217-237.
26. Fisher L. 1966. “Some New Stock-Market Indexes.” Journal of Business (January): 191-225.
27. Frost C. 1991. “Loss Contingency Reports and Stock Prices: A Replication and Extension of Banks and Kinney.” Journal of Accounting Research (Spring): 157-169.
28. Fung W. K. H., Rudd A. 1986. “Pricing New Corporate Bond Issues: An Analysis of Issue Cost and Seasoning Effects.” Journal of Finance July: 633-644.
29. Goldfeld S., Quandt R. 1965. “Some Tests for Homoskedasticity.” Journal of the American Statistical Association (June): 539-547.
30. Ho T., Singer R. F. 1984. “The Value of Corporate Debt With a Sinking Fund Provision.” Journal of Business (July): 315-336.
31. Holstrum G. L., Messier W. F. 1982. “A Review and Integration of Empirical Research on Materiality.” Auditing: A Journal of Practice and Theory (Fall): 45-63.
32. Jones P. E., Mason S., Rosenfield E. 1984. “Contingent Claims Analysis of Corporate Capital Structures: An Empirical Investigation.” Journal of Finance (June): 611-627.
33. Kesser R. 1971. “A Study of the Effects of Competition in the Tax-Exempt Bond Market.” Journal of Political Economy (July-August): 706-738.
34. Kidwel D. S., Marr M. W., Thompson G. R. 1984. “SEC Rule 415: The Ultimate Competitive Bid.” Journal of Financial and Quantitative Analysis (June): 183-195.
35. Kirk R. F. 1982. Experimental Design. New York: Brooks/Cole Publishing Co.
36. Lindvall J. R. 1977. “New Issue Corporate Bonds, Seasoned Market Efficiency and Yield Spreads.” Journal of Finance (September): 1057-1067.
37. Merton R. 1974. “On the Pricing of Corporate Debt: The Risk Structure of Interest Rates.” Journal of Finance (May): 449-470.
38. Monroe G. S., Teh S. T. 1993. “Predicting Uncertainty Audit Qualifications in Australia Using Publicly Available Information.” Accounting and Finance (November): 79-106.
39. Morris M. H., Nichols W. D. 1988. “Consistency Exceptions: Materiality Judgments and Audit Firm Structure.” The Accounting Review (April): 237-254.
40. Neter J., Wasserman W. 1974. Applied Linear Statistical Models. Homewood, Ill.: Irwin.
41. Ogden J. R. 1987. “Determinants of the Ratings and Yields on Corporate Bonds: Tests of the Contingent Claims Model.” The Journal of Financial Research (Winter): 329-339.
42. Prakash K., Chandy P. R. 1991. “Risk Premium in Corporate Bonds.” Akron Business and Economic Review (Spring): 92-107.
43. Reiter S. 1990. “The Use of Bond Market Data in Accounting Research.” Journal of Accounting Literature 9: 183-228.
44. Reiter S. 1991. “Pension Obligation and the Determination of Bond Risk Premiums: Evidence from the Electric Industry.” Journal of Business Finance and Accounting (November): 833-859.
45. Roberts G., Viscione J. 1984. “The Impact of Seniority and Security Covenants on Bond Yields: A Note.” Journal of Finance (December): 1597-1603.
46. Securities and Exchange Commission Accounting Rules. 1988. SEC Financial Reporting Release # 36. New York: Commerce Clearing House.
47. Sorenson E. H. 1979. “The Impact of Underwriting Method and Bidder Competition Upon Rate Bond Interest Cost.” Journal of Finance (September): 863-870.
48. Van Horne J. C. 1990. “Option Type Instruments.” Financial Market Rates and Flows. Englewood Cliffs, N.J.: Prentice-Hall.
49. Weinstein M. 1978. “The Seasoning Process of New Corporate Bond Issues.” Journal of Finance (December): 1343-1354.