Bank Lending Standards and Borrower Accounting Conservatism

References

• Ahmed AS, Duellman S (2007) Accounting conservatism and board of director characteristics: an empirical analysis. J. Accounting Econom. 43(2–3):411–437.Crossref, Google Scholar
• Ahmed AS, Billings B, Morton R, Harris M (2002) The role of accounting conservatism in mitigating bondholder-shareholder conflict over dividend policy and in reducing debt cost. Accounting Rev. 77(4):867–890.Crossref, Google Scholar
• Ali A, Hwang L-S (2000) Country-specific factors related to financial reporting and the value relevance of accounting data. J. Accounting Res. 38(1):1–21.Crossref, Google Scholar
• Armstrong C, Guay W, Weber J (2010) The role of information and financial reporting in corporate governance and contracting. J. Accounting Econom. 50(2):179–224.Crossref, Google Scholar
• Asea PK, Blomberg B (1998) Lending cycles. J. Econometrics 83(1):89–128.Crossref, Google Scholar
• Badia M, Duro M, Penalva F, Ryan S (2017) Conditionally conservative fair value measurements. J. Accounting Econom. 63(1):75–98.Crossref, Google Scholar
• Balasubramanyan L, Zaman S, Thomson J (2014) Are banks forward-looking in their loan loss provisioning? Evidence from the Senior Loan Officer Opinion Survey. Working paper 13-13, Federal Reserve Bank of Cleveland.Google Scholar
• Ball R, Shivakumar L (2005) Earnings quality in UK private firms: Comparative loss recognition timeliness. J. Accounting Econom. 39(1):83–128.Crossref, Google Scholar
• Ball R, Kothari S, Robin A (2000) The effect of international institutional factors on properties of accounting earnings. J. Accounting Econom. 29(1):1–51.Crossref, Google Scholar
• Ball R, Robin A, Sadka G (2008) Is financial reporting shaped by equity markets or by debt markets? An international study of timeliness and conservatism. Rev. Accounting Stud. 13(2–3):168–205.Crossref, Google Scholar
• Banker RD, Basu S, Byzalov D, Chen J (2016) The confounding effect of cost stickiness in conservatism research. J. Accounting Econom. 61(1):203–220.Crossref, Google Scholar
• Bassett W, Rezende M (2015) Relation between levels and changes in lending standards reported by banks in the Senior Loan Officer Opinion Survey on Bank Lending Practices. FEDS Notes (January 16). https://doi.org/10.17016/2380-7172.1478.Google Scholar
• Basu S (1997) The conservatism principle and the asymmetric timeliness of earnings. J. Accounting Econom. 24(1):3–37.Crossref, Google Scholar
• Beatty A, Weber J, Yu J (2008) Conservatism and debt. J. Accounting Econom. 45(2–3):154–174.Crossref, Google Scholar
• Bharath S, Sunder J, Sunder SV (2008) Accounting quality and debt contracting. Accounting Rev. 83(1):1–28.Crossref, Google Scholar
• Bharath S, Dahiya S, Saunders A, Srinivasan A (2011) Lending relationships and loan contract terms. Rev. Financial Stud. 24(4):1141–1203.Crossref, Google Scholar
• Braithwaite T (2013) Wells Fargo push on loans raises concerns. Financial Times (January 14), 17.Google Scholar
• Callen J, Chen F, Dou Y, Ng J (2016) Accounting conservatism and performance covenants: A signaling approach. Contemporary Accounting Res. 33(3):961–988.Crossref, Google Scholar
• Chava S, Purnanandam A (2011) The effect of banking crisis on bank-dependent borrowers. J. Financial Econom. 99(1):116–135.Crossref, Google Scholar
• Chava S, Roberts M (2008) How does financing impact investment? The role of debt covenants. J. Finance 63(5):2085–2121.Crossref, Google Scholar
• Chang X, Dasgupta S, Hilary G (2009) The effect of auditor quality on financing decisions. Accounting Rev. 84(4):1085–1117.Crossref, Google Scholar
• Chen PC (2016) Banks’ acquisition of private information about financial misreporting. Accounting Rev. 91(3):835–857.Crossref, Google Scholar
• Chung HH, Wynn JP (2008) Managerial legal liability coverage and earnings conservatism. J. Accounting Econom. 46(1):135–153.Crossref, Google Scholar
• DeFond ML, Lim CY, Zang Y (2015) Client conservatism and auditor-client contracting. Accounting Rev. 91(1):69–98.Crossref, Google Scholar
• Demerjian P (2017) Uncertainty and debt covenants. Rev. Accounting Stud. 22(3):1156–1197.Crossref, Google Scholar
• Demerjian P, Owens E (2016) Measuring the probability of financial covenant violation in private debt contracts. J. Accounting Econom. 61(2–3):433–447.Crossref, Google Scholar
• Denis DJ, Wang J (2014) Debt covenant renegotiations and creditor control rights. J. Financial Econom. 113(3):348–367.Crossref, Google Scholar
• Dennis S, Mullineaux D (2000) Syndicated lending. J. Financial Intermed. 9(4):404–426.Crossref, Google Scholar
• Desai P (2003) Financial Crisis, Contagion, and Containment: From Asia to Argentina (Princeton University Press, Princeton, NJ).Crossref, Google Scholar
• Diamond D (1984) Financial intermediation and delegated monitoring. Rev. Econom. Stud. 51(3):393–414.Crossref, Google Scholar
• Eichengreen B (2003) Capital Flows and Crises (MIT Press, Cambridge, MA).Google Scholar
• Erkens DH, Subramanyam KR, Zhang J (2014) Affiliated banker on board and conservative accounting. Accounting Rev. 89(5):1703–1728.Crossref, Google Scholar
• Ettredge M, Huang Y, Zhang W (2012) Earnings restatements and differential timeliness of accounting conservatism. J. Accounting Econom. 53(3):489–503.Crossref, Google Scholar
• Fama E (1985) What’s different about banks? J. Monetary Econom. 15(1):29–39.Crossref, Google Scholar
• Gamble R (1994) Banks scramble to make cheap, borrower-friendly loans. Corporate Cashflow Magazine (September), 42.Google Scholar
• Givoly D, Hayn C (2000) The changing time-series properties of earnings, cash flows and accruals: Has financial reporting become more conservative? J. Accounting Econom. 29(3):287–320.Crossref, Google Scholar
• Gul F, Tsui J (1997) A test of the free cash flow and debt monitoring hypotheses: Evidence from auditing pricing. J. Accounting Econom. 24:219–237.Crossref, Google Scholar
• Holthausen RW, Watts RL (2001) The relevance of the value-relevance literature for financial accounting standard setting. J. Accounting Econom. 31(1):3–75.Crossref, Google Scholar
• Houpt JV (1999) International activities of U.S. banks and in U.S. banking markets. Fed. Reserve Bull. 1999(9):599–615.Google Scholar
• Khan M, Watts R (2009) Estimation and empirical properties of a firm-year measure of accounting conservatism. J. Accounting Econom. 48(2–3):132–150.Crossref, Google Scholar
• Kho B, Lee D, Stulz R (2000) US bans, crises, and bailouts: From Mexico to LTCM. Amer. Econom. Rev. 90(2):28–31.Crossref, Google Scholar
• Kraus J (1998) Bankers urge emergency bailout fund for Brazil. American Banker (September 21), 1.Google Scholar
• Lawrence A, Sloan R, Sun Y (2013) Non-discretionary conservatism: Evidence and implications. J. Accounting Econom. 56(2–3):112–133.Crossref, Google Scholar
• Leary MT (2009) Bank loan supply, lender choice, and corporate capital structure. J. Finance 64(3):1143–1185.Crossref, Google Scholar
• Li Y, Lobo G (2015) Does accounting conservatism vary over the credit cycle? Working paper, University of Lethbridge, Alberta, Canada.Google Scholar
• Lisowsky P, Minnis M, Sutherland A (2017) Economic growth and financial statement verification. J. Accounting Res. 55(4):745–794.Crossref, Google Scholar
• Little B (1998) How greed can save the world; what’s with the global economy? Tight credit and fear rule the day. Surely something can halt the slide. The Globe and Mail (October 8), A1.Google Scholar
• Lo A (2014) Do declines in bank health affect borrowers’ voluntary disclosures? Evidence from international propagation of banking shocks. J. Accounting Res. 52(2):541–581.Crossref, Google Scholar
• Lown C, Morgan D (2006) The credit cycle and the business cycle: New findings using the loan officer opinion survey. J. Money, Credit Banking 38(6):1575–1597.Crossref, Google Scholar
• Lown C, Morgan D, Rohtagi S (2000) Listening to loan officers: The impact of commercial credit standards on lending and output. Econom. Policy Rev. 6(2):1–16.Google Scholar
• Martin X, Roychowdhury S (2015) Do financial market developments influence accounting practices? Credit default swaps and borrowers’ reporting conservatism. J. Accounting Econom. 59(1):80–104.Crossref, Google Scholar
• Merton RC (1974) On the pricing of corporate debt: The risk structure of interest rates. J. Finance 29:449–470.Google Scholar
• Murfin J (2012) The supply-side determinants of loan contract strictness. J. Finance 67(5):1565–1601.Crossref, Google Scholar
• Nikolaev VV (2010) Debt covenants and accounting conservatism. J. Accounting Res. 48(1):51–89.Crossref, Google Scholar
• Nini G, Smith D, Sufi A (2012) Credit control rights, corporate governance, and firm value. Rev. Financial Stud. 25(6):1713–1761.Crossref, Google Scholar
• Office of the Comptroller of the Currency (OCC) (2014) 2013 Survey of Credit Underwriting Practices (OCC Publications Coordinator, Washington, DC).Google Scholar
• Qiang X (2007) The effects of contracting, litigation, regulation, and tax costs on conditional and unconditional conservatism: Cross-sectional evidence at the firm level. Accounting Rev. 82(3):759–796.Crossref, Google Scholar
• Rajan R (1992) Insiders and outsiders: The choice between informed and arm’s length debt. J. Finance 47(4):1367–1400.Crossref, Google Scholar
• Rajan R, Winton A (1995) Covenants and collateral as incentives to monitor. J Finance 50(4):1113–1146.Crossref, Google Scholar
• Roberts MR (2015) The role of dynamic renegotiation and asymmetric information in financial contracting. J. Financial Econom. 116(1):61–81.Crossref, Google Scholar
• Roberts MR, Sufi A (2009a) Control rights and capital structure: An empirical investigation. J. Finance 64(4):1657–1695.Crossref, Google Scholar
• Roberts MR, Sufi A (2009b) Renegotiation of financial contracts: Evidence from private credit agreements. J. Financial Econom. 93(2):159–184.Crossref, Google Scholar
• Ruckes M (2004) Bank competition and credit standards. Rev. Financial Stud. 17(4):1073–1102.Crossref, Google Scholar
• Schenone C (2010) Lending relationships and information rents: Do banks exploit their information advantage? Rev. Financial Stud. 23(3):1149–1199.Crossref, Google Scholar
• Sharpe S (1990) Asymmetric information, bank lending, and implicit contracts: A stylized model of customer relationships. J. Finance 45(4):1069–1087.Google Scholar
• Shu SZ (2000) Auditor resignations: Clientele effects and legal liability. J. Accounting Econom. 29(2):173–205.Crossref, Google Scholar
• Sufi A (2007) Information asymmetry and financing arrangements: Evidence from syndicated loans. J. Finance 62(2):629–668.Crossref, Google Scholar
• Tan L (2013) Creditor control rights, state of nature, verification, and financial reporting conservatism. J. Accounting Econom. 55(1):1–22.Crossref, Google Scholar
• Van den Heuvel S (2002) Does bank capital matter for monetary transmission? Econom. Policy Rev. 8(1):259–265.Google Scholar
• Watts RL (2003) Conservatism in accounting, part I: Explanations and implications. Accounting Horizons 17(3):207–221.Crossref, Google Scholar
• Wittenberg-Moerman R (2008) The role of information asymmetry and financial reporting quality in debt trading: Evidence from secondary loan market. J. Accounting Econom. 46(2–3):240–260.Crossref, Google Scholar
• Wight R, Cooke W, Gray R (2009) The LSTA’s Complete Credit Agreement Guide (McGraw-Hill, New York).Google Scholar
• Zhang J (2008) The contracting benefits of accounting conservatism to lenders and borrowers. J. Accounting Econom. 45(1):27–54.Crossref, Google Scholar