Debt covenant slack, earnings management, and value relevance of accounting information
نویسندگان
چکیده
منابع مشابه
Debt covenant slack and real earnings management
We examine the relation between firms’ real earnings management decisions and the slack in their net worth debt covenant. Using private debt covenant data, we find that the overall level of real earnings management is higher when net worth covenant slack is tighter. Moreover, we find that this effect is more pronounced for loan-years with the tightest slack, which is a setting where benefits of...
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Acknowledgments We gratefully acknowledge the comments of Sudipta Basu, Christian Leuz and Jerry Zimmerman, the referee, and workshop participants at the Universities of Amsterdam and Chicago. We are grateful for financial support from the University of Chicago, Graduate School of Business. Abstract We provide a simple test of " costly contracting " and " value relevance theories " of accountin...
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ژورنال
عنوان ژورنال: International research journal of management, IT and social sciences
سال: 2019
ISSN: 2395-7492
DOI: 10.21744/irjmis.v6n4.661