Read Books Online and Download eBooks, EPub, PDF, Mobi, Kindle, Text Full Free.
The Roll Of Accounting In Debt Contract Renegotiations
Download The Roll Of Accounting In Debt Contract Renegotiations full books in PDF, epub, and Kindle. Read online The Roll Of Accounting In Debt Contract Renegotiations ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Book Synopsis The Roll of Accounting in Debt Contract Renegotiations by :
Download or read book The Roll of Accounting in Debt Contract Renegotiations written by and published by . This book was released on 2014 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a hand-collected sample of private debt contracts between U.S. publicly traded firms and financial institutions, I examine the role of accounting in the renegotiation of debt contracts following a positive shock to the borrower's credit quality. I find that, following a positive shock to their credit quality, firms with more timely reporting of good news are more likely to renegotiate their loan contracts and they do so sooner than firms with less timely good news reporting. Further, these effects are more pronounced for firms whose positive shocks can be more credibly communicated through financial reporting. My paper contributes to the literature on the role of accounting information in debt contract renegotiations.
Book Synopsis Accounting Conservatism and Debt Contract by : Jing Li
Download or read book Accounting Conservatism and Debt Contract written by Jing Li and published by . This book was released on 2010 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: His paper develops a theoretical model to understand the role of accounting conservatism in debt contracts, incorporating the possible renegotiation of debt contracts with accounting-based covenants. I find that the demand for accounting conservatism depends on whether renegotiation occurs and if so, at what cost. When the covenant is not renegotiable or when renegotiation cost is sufficiently high, more conservative accounting actually reduces the efficiency of debt contracts. When renegotiation cost is moderate, more conservative accounting may increase the entrepreneur's welfare under certain conditions, especially for firms with less promising investment opportunities and for firms with higher liquidation values. Both are characteristics of ``traditional industriesquot; characterized by low growth and high level of tangible assets in place. When renegotiation is costless, the degree of accounting conservatism becomes irrelevant and the first best liquidation is always achieved. These results call for more cross-sectional examinations on the role of accounting conservatism in debt contracts in empirical studies.
Book Synopsis Accounting Conservatism and Long-term Debt Contracts by : Aikaterini Ferentinou
Download or read book Accounting Conservatism and Long-term Debt Contracts written by Aikaterini Ferentinou and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this thesis is to examine the effect of a number of debt issue characteristics on debt contracting efficiency. After the initiation of a debt contract, inefficiencies can arise due to incomplete contracts and agency costs. I contribute to understanding whether debt maturity, different types of accounting-based (balance-sheet- and income-statement-based) debt covenants, as well as ability of renegotiation can restore efficiency. The research is motivated by the fact that there is an inconsistency in empirical and analytical results regarding the role of conservatism (beneficial or not) in the debt contracting setting. A reason for this inconsistency may well be the consideration of debt maturity. Previous analytical literature studies short-term debt contracts, while inefficiencies in the form of increased agency costs exist in case of longer debt maturity. Furthermore, analytical research does not examine balance-sheet debt covenants, although they also improve debt efficiency. My analytical show that there is a higher level of conservatism, when the long-term debt contracts include balance-sheet rather than income-statement debt covenants. Moreover, a higher level of conservatism is required under long-term than under short-term debt contracts, given that the conflict of interest between the firm and the lender is strong. My empirical findings provide empirical evidence in accordance with my analytical findings, while I also find that long-term (short-term) debt contracts include more (less) balance-sheet than income-statement debt covenants. Finally, I find that when renegotiation is an option, the intensiveness of the conflict of interest, the probability that the project is good, along with the level of renegotiation cost will determine the optimal level of conservatism. As the renegotiation cost increases, the result becomes more liberal, under a moderate conflict of interest and more conservative, under a strong conflict of interest.
Book Synopsis Essays on Debt Covenants by : Thomas D. Fields
Download or read book Essays on Debt Covenants written by Thomas D. Fields and published by . This book was released on 2004 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: One of the major uses of accounting information is in mitigating the conflict of interest problems which arise because of the different incentives of debt-holders and equity-holders. These incentive problems frequently lead to the inclusion of contractual debt covenants within lending agreements. The optimal use and form of such covenants is therefore of interest to both academics and practitioners. This dissertation expands on existing theory by considering two important aspects of debt covenants which have often been ignored. The first chapter of the dissertation considers the role played by the use of multiple covenants within the same debt contract. I develop a model that highlights the tradeoffs and interdependencies among different covenants in a multi-dimensional contract, and the effect of specific covenants on controlling over and under-investment problems caused by the different incentives faced by lenders and shareholders. A second chapter of the dissertation recognizes that debt covenants are written using numbers produced by the firm's accounting system, and develops a theory of how expected future accounting changes may affect the optimal debt contract in the presence of renegotiation. In particular the dissertation establishes how the effect of changes in accounting rules can play a role in determining when renegotiation occurs.
Book Synopsis Scope for Renegotiation in Private Debt Contracts by : Valeri V. Nikolaev
Download or read book Scope for Renegotiation in Private Debt Contracts written by Valeri V. Nikolaev and published by . This book was released on 2016 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt: I provide new evidence on the renegotiation of financial contracts using a comprehensive sample of over 90,000 debt contract renegotiations. I study whether the demand for monitoring determines the renegotiation intensity, defined as either the renegotiation frequency over a period of time or the time between renegotiations. Theory suggests that frequent debt contract renegotiation trades off the benefits of enhanced monitoring with the costs of suboptimal creditor intervention. Consistent with this tradeoff, I find that proxies for the increased demand for monitoring, such as financing constraints and the audit premium, exhibit a higher renegotiation intensity. In turn, the costs of creditor monitoring, proxied by the presence of growth options and R&D, are associated with a lower renegotiation intensity. I also find that contractual monitoring mechanisms, such as syndicate concentration and control rights, exhibit robust positive associations with renegotiation intensity. The evidence supports theories that emphasize the strategic aspect of control rights. Finally, renegotiations reveal new information to the market, consistent with their role in reducing information asymmetries. Overall, the evidence suggests the demand for monitoring is an important driver of renegotiation.
Book Synopsis Accounting and Debt Markets by : Mark Clatworthy
Download or read book Accounting and Debt Markets written by Mark Clatworthy and published by Taylor & Francis. This book was released on 2021-05-13 with total page 150 pages. Available in PDF, EPUB and Kindle. Book excerpt: Accounting and Debt Markets: Four Pieces on the Role of Accounting Information in Debt Markets provides novel and up-to-date evidence on the role of accounting information in debt markets Companies and organisations worldwide rely heavily on debt markets for short, medium and long-term financing, and debt markets and financial intermediaries have significant effects on the real economy. Accounting information has various functions in debt markets, including inter alia, informing pricing decisions and credit ratings, determining the allocation of creditor control rights and establishing bank capital adequacy requirements. The chapters in this book provide illustrative discussion, analysis and evidence on the importance of accounting information in credit markets. The first of the four pieces reflects on how a conservative financial reporting system helps firms obtain debt funds and with better conditions, and why this is the case. The second examines the effects of accounting disclosure on credit ratings of private companies and shows that accounting information is useful for credit rating agencies. The two final pieces reflect on how banks should account for credit losses, and on how regulators are tackling this issue. The chapters in this book were originally published as a special issue of Accounting and Business Research.
Book Synopsis Accounting Conservatism and Managerial Information Acquisition by : Christian Laux
Download or read book Accounting Conservatism and Managerial Information Acquisition written by Christian Laux and published by . This book was released on 2020 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the interaction between strategic managerial information acquisition and shareholders' optimal degree of conservative accounting. Conservative accounting results in more frequent early warnings that allow lenders or corporate boards to take corrective actions, but also increases the risk of false alarms and excessive interventions. Managers' ability to gather additional evidence changes this trade-off because managers have an intrinsic incentive to obtain and disclose evidence that prevents intervention. Managers' incentives to refute low accounting reports, but not high reports, reduces the negative consequences of conservative reporting without altering its benefits. In addition, conservatism increases the likelihood that managers find favorable evidence after an early warning and hence induces greater effort in gathering evidence. Our model provides a novel explanation for the empirical observations that conservatism plays a positive role in debt contracts and that covenant violations frequently trigger debt contract renegotiation and covenant waivers.
Book Synopsis The Economics Of International Debt Renegotiation by : Boon-Chye Lee
Download or read book The Economics Of International Debt Renegotiation written by Boon-Chye Lee and published by Routledge. This book was released on 2019-09-06 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt: The author considers the risks that the failure of Third World economies pose for highly exposed banks, whose collapse would threaten domestic as well as international financial systems.
Author :United States. Congress. House. Committee on Government Operations. Government Activities Subcommittee Publisher : ISBN 13 : Total Pages :62 pages Book Rating :4.0/5 (18 download)
Book Synopsis The Efficiency and Effectiveness of Renegotiation Board Operations by : United States. Congress. House. Committee on Government Operations. Government Activities Subcommittee
Download or read book The Efficiency and Effectiveness of Renegotiation Board Operations written by United States. Congress. House. Committee on Government Operations. Government Activities Subcommittee and published by . This book was released on 1970 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Financial Accounting Theory by : Craig Deegan
Download or read book Financial Accounting Theory written by Craig Deegan and published by McGraw-Hill Education Australia. This book was released on 2014 with total page 648 pages. Available in PDF, EPUB and Kindle. Book excerpt: The much anticipated fourth edition of Craig Deegan's Financial Accounting Theory delivers authoritative and completely up to date material with the discussion of both existing theories and newer theories that have surfaced as financial reporting has become more international. This edition includes a new selection of modern 'Accounting Headlines' which provide current examples of organisations and individuals putting accounting theory into practice in both local and global settings. Financial Accounting Theory covers additional topics such as critical perspectives, public sector accounting and fair value. Workflows and processes are presented using enhanced visual charts to help demonstrate how accounting works in practice. Deegan presents the concepts in a clear and straightforward style, while challenging students to think critically about the range of accounting theories. Financial Accounting Theory provides a sound basis for readers contemplating further research and develops habits of analytical reasoning and critical thinking.
Download or read book Contract Theory written by Patrick Bolton and published by MIT Press. This book was released on 2004-12-10 with total page 746 pages. Available in PDF, EPUB and Kindle. Book excerpt: A comprehensive introduction to contract theory, emphasizing common themes and methodologies as well as applications in key areas. Despite the vast research literature on topics relating to contract theory, only a few of the field's core ideas are covered in microeconomics textbooks. This long-awaited book fills the need for a comprehensive textbook on contract theory suitable for use at the graduate and advanced undergraduate levels. It covers the areas of agency theory, information economics, and organization theory, highlighting common themes and methodologies and presenting the main ideas in an accessible way. It also presents many applications in all areas of economics, especially labor economics, industrial organization, and corporate finance. The book emphasizes applications rather than general theorems while providing self-contained, intuitive treatment of the simple models analyzed. In this way, it can also serve as a reference for researchers interested in building contract-theoretic models in applied contexts.The book covers all the major topics in contract theory taught in most graduate courses. It begins by discussing such basic ideas in incentive and information theory as screening, signaling, and moral hazard. Subsequent sections treat multilateral contracting with private information or hidden actions, covering auction theory, bilateral trade under private information, and the theory of the internal organization of firms; long-term contracts with private information or hidden actions; and incomplete contracts, the theory of ownership and control, and contracting with externalities. Each chapter ends with a guide to the relevant literature. Exercises appear in a separate chapter at the end of the book.
Book Synopsis Sovereign Debt Restructurings 1950-2010 by : Mr.Udaibir S. Das
Download or read book Sovereign Debt Restructurings 1950-2010 written by Mr.Udaibir S. Das and published by International Monetary Fund. This book was released on 2012-08-01 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides a comprehensive survey of pertinent issues on sovereign debt restructurings, based on a newly constructed database. This is the first complete dataset of sovereign restructuring cases, covering the six decades from 1950–2010; it includes 186 debt exchanges with foreign banks and bondholders, and 447 bilateral debt agreements with the Paris Club. We present new stylized facts on the outcome and process of debt restructurings, including on the size of haircuts, creditor participation, and legal aspects. In addition, the paper summarizes the relevant empirical literature, analyzes recent restructuring episodes, and discusses ongoing debates on crisis resolution mechanisms, credit default swaps, and the role of collective action clauses.
Book Synopsis Why Don¿t Lenders Renegotiate More Home Mortgages? by : Manuel Adelino
Download or read book Why Don¿t Lenders Renegotiate More Home Mortgages? written by Manuel Adelino and published by DIANE Publishing. This book was released on 2011 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is a print on demand edition of a hard to find publication. Servicers have been reluctant to renegotiate mortgages since the foreclosure crisis started in 2007, having performed payment-reducing modifications on only 3% of seriously delinquent loans. This reluctance does not result from securitization: Servicers renegotiate similarly small fractions of loans that they hold in their portfolios. The paper¿s results are robust to different definitions of renegotiation, including the one most likely to be affected by securitization, and to different definitions of delinquency. Redefault risk, the possibility that a borrower will still default despite costly renegotiation, and self-cure risk, the possibility that a seriously delinquent borrower will become current without renegotiation, make renegotiation unattractive to investors. Illus.
Book Synopsis Renegotiation, Dynamic Efficiency, and Vertical Restraints in Electricity Marketing Contracts by : Dean V. Williamson
Download or read book Renegotiation, Dynamic Efficiency, and Vertical Restraints in Electricity Marketing Contracts written by Dean V. Williamson and published by . This book was released on 2003 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Research Handbook on Corporate Bankruptcy Law by : Barry E. Adler
Download or read book Research Handbook on Corporate Bankruptcy Law written by Barry E. Adler and published by Edward Elgar Publishing. This book was released on 2020-06-26 with total page 456 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this Research Handbook, today’s leading experts on the law and economics of corporate bankruptcy address fundamental issues such as the efficiency of bankruptcy, the role and treatment of creditors – particularly secured creditors – in the bankruptcy process, the allocation of going-concern surplus among claimants, the desirability of liquidation in the absence of such surplus, the role of contract in bankruptcy resolution, the role of derivatives in the bankruptcy process, the costs of the bankruptcy system, and the special case of financial institutions, among other topics.
Book Synopsis Conference Issue on Accounting in the Twenty-First Century by :
Download or read book Conference Issue on Accounting in the Twenty-First Century written by and published by . This book was released on 1999 with total page 764 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Agency Problems and Financial Contracting by : Amir Barnea
Download or read book Agency Problems and Financial Contracting written by Amir Barnea and published by Prentice Hall. This book was released on 1985 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt:
