Economic consequences of operating lease recognition

• 成果类型: Article
• 署名作者: Ma, Mark (Shuai); Thomas, Wayne B.
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; University of Oklahoma System; University of Oklahoma - Norman
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2022.101566
• 发表日期: 2023
• 关键词: CORPORATE GOVERNANCE; Control rights; INFORMATION; disclosure; MARKET; IMPACT; debt; earnings; industry; QUALITY

摘要

Accounting Standards Update No. 2016-02 (ASU 2016-02) generated considerable debate between managers and standard setters. We find evidence that after issuance of ASU 2016-02, lessee firms decreased their use of long-term operating leases, increased their use of short-term operating leases, and increased their use of capital expenditures. The shift from long-term operating leases to capital expenditures is more pronounced for firms that had greater reporting incentives to use operating leases prior to ASU 2016-02. However, we find no evidence that the change in leasing behavior leads to negative outcomes predicted by managers (i.e., no evidence of a decrease in reported firm performance, a decrease in firm value, increase in firm risk, decrease in credit ratings, increase in debt covenant vi-olations, or decrease in employment). Our study adds to the literature on the real impacts of accounting standards on managers' investment behavior and economic consequences for lessee firms and their stakeholders. Published by Elsevier B.V.