Accounting Standards and Debt Covenants: Has the ‘Balance Sheet Approach’ Led to a Decline in the Use of Balance Sheet Covenants?
By Peter R. Demerjian. 2011
229 citations recorded by the source corpus.
Subfields: Accounting, Economics and Econometrics, Finance
View Paper: https://www.semanticscholar.org/paper/d0defd0863906c897fd699be2ccb82aff07a883b
Citations in the corpus
- The Evolution of 10-K Textual Disclosure: Evidence from Latent Dirichlet Allocation (2017, unknown): “2 See, for example, Collins et al. (1997), Francis and Schipper (1999), Lev and Zarowin (1999), Givoly and Hayn (20 0 0), Dichev and Tang (20 08), Demerjian (2011), Srivastava (2014) , and Bushman et al. (2016) . http://dx.doi.org/10.1016/j.jacceco.2017.07.002 0165-4101/© 2017 Elsevier B.V.”
- Accounting Information in Financial Contracting: The Incomplete Contract Theory Perspective (2016, unknown): “For example, Demerjian and Owens (2015), in a sample of 592 fixed charge covenants, document 356 different definitions. From an incomplete contract perspective, these adjustments can be interpreted as enhancing the accounting signal so that it more precisely reflects the state and, in turn, allows f”
- The deteriorating usefulness of financial report information and how to reverse it (2018, unknown): “On the other hand, Demerjian (2011) reports that ‘Because balance sheet [fair value] adjustments provide unreliable signals of the borrower’s liquidation value, lenders will, in turn, use balance sheet-based financial covenants less frequently’ (p. 179).”
- Who Uses Financial Reports and for What Purpose? Evidence from Capital Providers (2014, unknown): “In a recent study, Demerjian (2011) suggests that from 1996 to 2007, the use of covenants based on balance sheet variables and ratios has declined compared with income statement ratios due to the broader adoption of fair value measurement by standard setters.”
- Measuring the Probability of Financial Covenant Violation in Private Debt Contracts (2016, unknown): “For example, Demerjian (2011) predicts that the “balance sheet perspective” has affected both the use and the probability of violation of balance sheet covenants.”