Author : John Bannon Donovan
Publisher :
ISBN 13 :
Total Pages : 137 pages
Book Rating : 4.:/5 (953 download)
Book Synopsis Essays in Accounting Information and External Finance by : John Bannon Donovan
Download or read book Essays in Accounting Information and External Finance written by John Bannon Donovan and published by . This book was released on 2016 with total page 137 pages. Available in PDF, EPUB and Kindle. Book excerpt: I examine the use of accounting information in external finance. In Chapter 1, I study the use of accounting disclosure in equity crowdfunding to understand how accounting and financial reporting facilitates start-up financing. I find no relation between historical accounting disclosure and start-up capital obtained from crowdfunding investors, on average. However, I find a positive relation between capital raised and the entrepreneurs long-term forecasts of expected future performance. In Chapter 2, I examine the use of financial covenants in private debt contracts when borrowers have incentives to increase the riskiness of the firms investments. I find that debt contracts to borrowers with greater risk-taking incentives prior to contract inception are more likely to include a debt-to-earnings covenant. In Chapter 3, in co-authored work with Peter Demerjian and Jared Jennings, I examine whether the borrowers management earnings forecast accuracy is useful information in screening by providing an observable signal of the borrowers ability to anticipate future economic conditions. We find that borrowers with more accurate forecasts prior to contract inception receive a lower interest rate.