Debt Contracting and Changes to the Accounting for Leases: Implications of Accounting Standards Codification 842

Lin Cheng; Jacob Jaggi; Mark Yuzhi Yan; Spencer Young

doi:10.2139/ssrn.4203733

journal article Jan 01, 2022

Debt Contracting and Changes to the Accounting for Leases: Implications of Accounting Standards Codification 842

Lin Cheng

Jacob Jaggi

Mark Yuzhi Yan Spencer Young

SSRN Electronic Journal · Elsevier BV

View at Publisher Save 10.2139/ssrn.4203733

Topics

No keywords indexed for this article. Browse by subject →

References

42

[1]

P Aghion "An incomplete contracts approach to financial contracting" The Review of Economic Studies (1992) 10.2307/2297860

[2]

J Altamuro "Operating leases and credit assessments" Contemporary Accounting Research (2014) 10.1111/1911-3846.12033

[3]

M Ashraf Users' Solicitation of Disclosure When Accounting Standards Restrict Managers' Discretion Over Financial Reporting: Evidence from Conference Calls (2024)

[4]

P Asquith "Performance pricing in bank debt contracts" Journal of Accounting and Economics (2005) 10.1016/j.jacceco.2004.09.005

[5]

A Beatty "The importance of accounting changes in debt contracts: the cost of flexibility in covenant calculations" Journal of Accounting and Economics (2002) 10.1016/s0165-4101(02)00046-0

[6]

A Beatty "Nonrecurring Items in Debt Contracts" Contemporary Accounting Research (2019) 10.1111/1911-3846.12426

[7]

P A Bianchi "Organized Crime and Firms' Financial Statements: Evidence from Criminal Investigations in Italy" The Accounting Review (2021) 10.2308/tar-2019-0079

[8]

P Bolton "Optimal debt structure and the number of creditors" Journal of Political Economy (1996) 10.1086/262015

[9]

M Campello "Customer concentration and loan contract terms" Journal of Financial Economics (2017) 10.1016/j.jfineco.2016.03.010

[10]

How Does Financing Impact Investment? The Role of Debt Covenants

Sudheer Chava, MICHAEL R. ROBERTS

The Journal of Finance 2008 10.1111/j.1540-6261.2008.01391.x

[11]

L Cheng "Does Restricting Managers' Discretion through GAAP Impact the Usefulness of Accounting Information in Debt Contracting?" Contemporary Accounting Research (2022) 10.1111/1911-3846.12759

[12]

H B Christensen "Contracting on GAAP changes: large sample evidence" Journal of Accounting Research (2017) 10.1111/1475-679x.12175

[13]

D Christensen Reporting incentives and consequences of lease accounting standards (2022)

[14]

D L Collins "Financial reporting outcomes under rules-based and principles-based accounting standards" Accounting Horizons (2012) 10.2308/acch-50266

[15]

K J Cornaggia "Bringing leased assets onto the balance sheet" Journal of Corporate Finance (2013) 10.1016/j.jcorpfin.2013.06.007

[16]

N Dass "Within-syndicate conflicts, loan covenants, and syndicate formation" Financial Management (2020) 10.1111/fima.12270

[17]

Deloitte Lease accounting survey: Preparing for implementation (2014)

[18]

K Ely "Operating Lease Accounting and the Market's Assessment of Equity Risk" Journal of Accounting Research (1995) 10.2307/2491495

[19]

Fasb Topic 842 Leases -Opportunities for Research (2021)

[20]

O Hart "A theory of debt based on the inalienability of human capital" The Quarterly Journal of Economics (1994) 10.2307/2118350

[21]

J Heese "Variable leases under ASC 842: First evidence on properties and consequences" Review of Accounting Studies (Forthcoming) (2023)

[22]

Theory of the firm: Managerial behavior, agency costs and ownership structure

Michael C. Jensen, William H. Meckling

Journal of Financial Economics 1976 10.1016/0304-405x(76)90026-x

[23]

Iasb Effects Analysis International Financial Reporting Standard: IFRS 16 Leases (2016)

[24]

E Imhoff "Operating leases: Impact of constructive capitalization" Accounting Horizons (1991)

[25]

E Imhoff "Economic consequences of accounting standards: The lease disclosure rule change" Journal of Accounting and Economics (1988) 10.1016/0165-4101(88)90006-7

[26]

K Lee Impact of ASC 606 on the cost of debt: Implications for expanding the use of principles-based accounting standards (2024)

[27]

B Li "Leasing loses altitude while ownership takes off: Real effects of the new lease standard" The Accounting Review (2024) 10.2308/tar-2022-0290

[28]

N Li "Negotiated measurement rules in debt contracts" Journal of Accounting Research (2010) 10.1111/j.1475-679x.2010.00386.x

[29]

S C Lim "Do operating leases expand credit capacity? Evidence from borrowing costs and credit ratings" Journal of Corporate Finance (2017) 10.1016/j.jcorpfin.2016.10.015

[30]

M S Ma "Economic Consequences of Operating Lease Recognition" Journal of Accounting and Economics (2023)

[31]

The Value of Financial Statement Verification in Debt Financing: Evidence from Private U.S. Firms

Michael Minnis

Journal of Accounting Research 2011 10.1111/j.1475-679x.2011.00411.x

[32]

M B Mohrman The Use of Fixed GAAP Provisions in Debt Contracts. Accounting Horizons (1996)

[33]

V V Nikolaev "Scope for renegotiation in private debt contracts" Journal of Accounting and Economics (2018) 10.1016/j.jacceco.2017.11.007

[34]

G Nini "Creditor control rights, corporate governance, and firm value" Review of Financial Studies (2012) 10.1093/rfs/hhs007

[35]

Pwc (2019)

[36]

D Saavedra "Syndicate size and the choice of covenants in debt contracts" The Accounting Review (2018) 10.2308/accr-52023

[37]

S A Sharpe "Asymmetric information, bank lending, and implicit contracts: A stylized model of customer relationships" The Journal of Finance (1990)

[38]

C W Smith "On financial contracting: An analysis of bond covenants" Journal of Financial Economics (1979) 10.1016/0304-405x(79)90011-4

[39]

A Sufi "Information asymmetry and financing arrangements: Evidence from syndicated loans" The Journal of Finance (2007) 10.1111/j.1540-6261.2007.01219.x

[40]

Ahead of the game: Momentous IFRS 16 lease accounting changes have little effect on corporate credit ratings (2019)

[41]

"Leasing and leverage -credit rating agencies disagree" The Footnotes Analyst (2020)

[42]

D J Weidner "New FASB rules on accounting for leases: a Sarbanes-Oxley promise delivered" The Business Lawyer (2017)

Metrics

2

Citations

42

References

Details

Published: Jan 01, 2022

Authors

Carson College of Business, Washington State University, Pullman, Washington 99163

Cite This Article

Lin Cheng, Jacob Jaggi, Mark Yuzhi Yan, et al. (2022). Debt Contracting and Changes to the Accounting for Leases: Implications of Accounting Standards Codification 842. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4203733

Debt Contracting and Changes to the Accounting for Leases: Implications of Accounting Standards Codification 842

You May Also Like