Conservatism and debt

• 成果类型: Article
• 署名作者: Beatty, Anne; Weber, Joseph; Yu, Jeff Jiewei
• 署名单位: Massachusetts Institute of Technology (MIT); University System of Ohio; Ohio State University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2008.04.005
• 发表日期: 2008
• 关键词: ACCOUNTING CONSERVATISM; INFORMATION; earnings; QUALITY

摘要

Despite the unquestionable influence of conservatism, disagreement remains about what economic demands lead to financial reporting conservatism. Research examining lenders' demands for reporting conservatism has been questioned for ignoring conservative contract modifications. We document that these modifications exist but are not ubiquitous. We find contract modifications are more likely when agency costs are higher and litigation, tax and equity demands for conservatism are lower. However, we find a positive association between unexplained reporting conservatism and contract modifications, suggesting contractual modifications alone do not fulfill lenders' demands for conservatism. (c) 2008 Elsevier B.V. All rights reserved.