The Debt-Contracting Value of Accounting Numbers and Financial Covenant Renegotiation
Published Online:1 Aug 2019https://doi.org/10.1287/mnsc.2018.3276
References
- (1992) An incomplete contracts approach to financial contracting. Rev. Econom. Stud. 59(3):473–494.Crossref, Google Scholar
- (1980) Future investment opportunities and the value of the call provision on a bond [Comment]. J. Finance 35(4):1051–1054.Crossref, Google Scholar
- (2005) The effects of accelerated revenue recognition on earnings management and earnings informativeness: Evidence from SEC Staff Accounting Bulletin No. 101. Accounting Rev. 80(2):373–401.Crossref, Google Scholar
- (2010) The role of information and financial reporting in corporate governance and contracting. J. Accounting Econom. 50(2/3):179–234.Crossref, Google Scholar
- (2008) The debt-contracting value of accounting information and loan syndicate structure. J. Accounting Res. 46(2):247–287.Crossref, Google Scholar
- (2007) Proportionate consolidation vs. the equity method: additional evidence on the association with bond ratings. Internat. Rev. Financial Anal. 16(5):496–507.Crossref, Google Scholar
- (2012) Evidence on the determinants and economic consequences of delegated monitoring. J. Accounting Econom. 53(3):555–576.Crossref, Google Scholar
- (2008) Conservatism and debt. J. Accounting Econom. 45(2–3):154–174.Crossref, Google Scholar
- (1993) Costs of technical violation of accounting-based debt covenants. Accounting Rev. 68(2):233–257.Crossref, Google Scholar
- (2008) Liquidation values and the credibility of financial contract renegotiation: Evidence from U.S. airlines. Quart. J. Econom. 123(4):1635–1677.Crossref, Google Scholar
- (1996) Investor valuation and abandonment option. J. Financial Econom. 42(2):257–287.Crossref, Google Scholar
- (2008) Accounting quality and debt-contracting. Accounting Rev. 83(1):1–28.Crossref, Google Scholar
- (2012) Accounting discretion, loan loss provisioning, and discipline of banks’ risk-taking. J. Accounting Econom. 54(1):1–18.Crossref, Google Scholar
- (2010) Price discovery and dissemination of private information by loan syndicate participants. J. Accounting Res. 48(5):921–972.Crossref, Google Scholar
- (2017) Borrower private information covenants and loan contract monitoring. J. Accounting Econom. 64(2/3):313–339.Crossref, Google Scholar
- (1993) Creditors’ decisions to waive violations of accounting-based debt covenants. Accounting Rev. 68(2):218–232.Crossref, Google Scholar
- (2012) Capital vs. performance covenants in debt contracts. J. Accounting Res. 50(1):75–116.Crossref, Google Scholar
- (2016) Accounting information in financial contracting: The incomplete contract theory perspective. J. Accounting Res. 54(2):397–435.Crossref, Google Scholar
- (2011) The impact of financial reporting quality on debt-contracting: Evidence from internal control weakness reports. J. Accounting Res. 49(1):97–136.Crossref, Google Scholar
- (2002) The quality of accruals and earnings. Accounting Rev. 77(Supplement):35–59.Crossref, Google Scholar
- (2011) Accounting standards and debt covenants: Has the “balance sheet approach” damaged the balance sheet? J. Accounting Econom. 52(2/3):178–202.Crossref, Google Scholar
- (2017) Uncertainty and debt covenants. Rev. Accounting Stud. 22(3):1156–1197.Crossref, Google Scholar
- (2016) Measuring the probability of financial covenant violation in private debt contracts. J. Accounting Econom. 61(2/3):433–447.Crossref, Google Scholar
- (2014) Debt covenant renegotiations and credit control rights. J. Financial Econom. 113(3):348–367.Crossref, Google Scholar
- (1993) Seniority and maturity of debt contracts. J. Financial Econom. 33(3):341–368.Crossref, Google Scholar
- (2002) Large-sample evidence on the debt covenant hypothesis. J. Accounting Res. 40(4):1091–1123.Crossref, Google Scholar
- (2013) Relationship-specificity, contract enforceability, and income smoothing. Accounting Rev. 88(5):1629–1656.Crossref, Google Scholar
- (2009) On loan sales, loan contracting, and lending relationships. Rev. Financial Stud. 22(7):2635–2672.Crossref, Google Scholar
- (1985) Costly contract contingencies. Internat. Econom. Rev. 26(1):233–250.Crossref, Google Scholar
- (2017) Direct evidence on the informational properties of earnings in loan contracts. J. Accounting Res. 55(2):371–406.Crossref, Google Scholar
- (2008) A reexamination of the tradeoff between the future benefit and riskiness of R&D increases. J. Accounting Res. 46(1):27–52.Crossref, Google Scholar
- (2014) Affiliated banker on board and conservative accounting. Accounting Rev. 89(5):1703–1728.Crossref, Google Scholar
- (2014) CEO turnover, financial distress and contractual innovations. Accounting Rev. 89(3):959–990.Crossref, Google Scholar
- (2017) Further evidence on consequences of debt covenant violations. Contemporary Accounting Res. 34(3):1489–1521.Crossref, Google Scholar
- (2009) Design and renegotiation of debt covenants. Rev. Financial Stud. 22(2):749–781.Crossref, Google Scholar
- (2017) The changing relevance of accounting information to debt holders over time. Rev. Accounting Stud. 22(1):64–108.Crossref, Google Scholar
- (2008) Corporate misreporting and bank loan contracting. J. Financial Econom. 89(1):44–61.Crossref, Google Scholar
- (2004) Assessing the probability of bankruptcy. Rev. Accounting Stud. 9(1):5–34.Crossref, Google Scholar
- (1983) The economic consequences of accounting choice, implications of costly contracting and monitoring. J. Accounting Econom. 5:77–117.Crossref, Google Scholar
- (1988) Limited contract enforcement and strategic renegotiation. Amer. Econom. Rev. 78(3):471–484.Google Scholar
- (2011) Institutional stock trading on loan market information. J. Financial Econom. 100(2):284–303.Crossref, Google Scholar
- (2012) Does it matter who pays for bond ratings? Historical evidence. J. Financial Econom. 105(3):607–621.Crossref, Google Scholar
- (1997) Do investment-cash flow sensitivities provide useful measures of financing constraints? Quart. J. Econom. 112(1):169–215.Crossref, Google Scholar
- (2011) Internal control weakness and bank loan contracting: Evidence from SOX Section 404 disclosures. Accounting Rev. 86(4):1157–1188.Crossref, Google Scholar
- (2015) Do rating agencies cater? Evidence from rating-based contracts. J. Account. Econom. 59(2–3):264–283.Crossref, Google Scholar
- (2013) Equity method investments and sell-side analysts’ information environment. Accounting Rev. 88(6):2089–2115.Crossref, Google Scholar
- (1983) Accounting information in private markets: Evidence from private lending agreements. Accounting Rev. 58(1):23–41.Crossref, Google Scholar
- (1996) The capitalization, amortization, and value-relevance of R&D. J. Accounting Econom. 21(1):107–138.Crossref, Google Scholar
- (2010) Negotiated measurement rules in debt contracts. J. Accounting Res. 48(5):1103–1144.Crossref, Google Scholar
- (2015) Performance measures in earnings-based financial covenants in debt contracts. Working paper, University of Texas at Dallas, Richardson.Google Scholar
- (2016) Performance measures in earnings-based financial covenants in debt contracts. J. Accounting Res. 54(4):1149–1186.Crossref, Google Scholar
- (2015) Default clauses in debt contracts. Rev. Accounting Stud. 20(4):1596–1637.Crossref, Google Scholar
- (2016) Dynamic threshold values in earnings-based covenants. J. Accounting Econom. 61(2–3):605–629.Crossref, Google Scholar
- (2011) Do hedge funds trade on private information? Evidence from syndicated lending and short-selling. J. Financial Econom. 99(3):477–499.Crossref, Google Scholar
- (2018) Scope for renegotiation in private debt contracts. J. Accounting Econom. 65(2/3):270–301.Crossref, Google Scholar
- (2009) Creditor control rights and firm investment policy. J. Financial Econom. 92(3):400–420.Crossref, Google Scholar
- (2012) Creditor control rights, corporate governance, and firm value. Rev. Financial Stud. 25(6):1713–1761.Crossref, Google Scholar
- (1992) Insiders and outsiders, the relationship between informed and arm’s-length debt. J. Finance 47(4):1367–1400.Crossref, Google Scholar
- (2015) The role of dynamic renegotiation and asymmetric information in financial contracting. J. Financial Econom. 116(1):61–81.Crossref, Google Scholar
- (2009a) Renegotiation of financial contracts, evidence from private credit agreements. J. Financial Econom. 93(2):159–184.Crossref, Google Scholar
- (2009b) Control rights and capital structure: An empirical investigation. J. Finance 64(4):1657–1695.Crossref, Google Scholar
- (1999) Complexity and renegotiation: A foundation for incomplete contracts. Rev. Econom. Stud. 66(1):57–82.Crossref, Google Scholar
- (2013) The role of financial reporting in debt contracting and in stewardship. Accounting Bus. Res. 43(4):363–383.Crossref, Google Scholar
- (2001) Forecasting bankruptcy more accurately: A simple hazard model. J. Bus. 74(1):101–124.Crossref, Google Scholar
- (1979) On financial contracting: An analysis of bond covenants. J. Financial Econom. 7(2):117–161.Crossref, Google Scholar
- (2013) Creditor control rights, state of nature verification, and financial reporting conservatism. J. Accounting Econom. 55(1):1–22.Crossref, Google Scholar
- (1999) Incomplete contracts: Where do we stand? Econometrica 67(4):741–781.Crossref, Google Scholar
- (2006) Redacted disclosure. J. Accounting Res. 44(4):791–814.Crossref, Google Scholar
- (1989) Likelihood ratio tests for model selection and non-nested hypotheses. Econometrica 57(2):307–333.Crossref, Google Scholar
- (2008) The contracting benefits of accounting conservatism to lenders and borrowers. J. Accounting Econom. 45(1):27–54.Crossref, Google Scholar
- (2014) The role of accounting in debt contract renegotiations: Evidence from positive shocks. Unpublished doctoral dissertation, Massachusetts Institute of Technology, Cambridge.Google Scholar

