Negotiated Measurement Rules in Debt Contracts

By Ningzhong Li. 2010

136 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/824e7b100b5bf5aa51899d5763e6495bfd0576c9

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Citations in the corpus

Financial statement comparability and credit risk (2013, unknown): “Debt contracts adjust net worth and net income to reduce debtholder-equityholder conflicts and other contracting problems (Leftwich 1983; Li 2010).”
Who Uses Financial Reports and for What Purpose? Evidence from Capital Providers (2014, unknown): “Income statement-based covenants usually use adjusted earnings numbers such as EBIT or EBITDA that are more insulated from the effect of GAAP changes, while comprehensive income is hardly ever used (Li, 2010).”
Measuring the Probability of Financial Covenant Violation in Private Debt Contracts (2016, unknown): “5 based on covenant count or a measure that closely follows the implementation in Murfin (2012). As an additional illustration of the usefulness of our measure, we reexamine a non-result from the prior literature.”
Accounting Information in Financial Contracting: The Incomplete Contract Theory Perspective (2016, unknown): “Li (2010) examines contractual definitions of accounting numbers used in syndicated loan contracts and finds that transitory components of earnings (e.g., earnings from discontinued operations) are typically eliminated from GAAP earnings.”
Female CEOs and Core Earnings Quality: New Evidence on the Ethics Versus Risk-Aversion Puzzle (2018, unknown): “In addition, the extant research suggests that debt markets also pay more attention to this number (Dyreng et al. 2016; Li 2010).”
Intended and Unintended Consequences of Mandatory IFRS Adoption: A Review of Extant Evidence and Suggestions for Future Research (2013, unknown): “…adoption increasing stock market liquidity (Daske et al., 2008), decreasing bid–ask spreads (Muller et al., 2011) and the cost of equity capital (S. Li, 2010), increasing cross-border equity investments by mutual funds (DeFond et al., 2011; see also Yu, 2010) as well as by individual investors…”
The Impact of Financial Reporting Quality on Debt Contracting: Evidence from Internal Control Weakness Reports (2011, methodology): “We compute the mean interaction effect (MIE) for the interaction variables in the security probit regression (Norton et al. [2004]).”
IFRS – 10 years later (2016, background): “One possible response from lenders and borrowers would be to exclude some earnings and balance sheet components from the contractual definitions of earnings and balance sheet quantities, as studied by Li (2010).”