IDEAS home Printed from https://ideas.repec.org/a/taf/acctbr/v43y2013i4p386-417.html
   My bibliography  Save this article

What do we know about the role of financial reporting in debt contracting and debt covenants?

Author

Listed:
  • Peter Taylor

Abstract

The paper examines the role of financial reporting in debt contracting and in particular focuses on the definition, measurement, and monitoring of accounting-based covenants used to manage agency relationships arising from borrowing by firms. The paper also reviews research in areas of financial reporting where the presence of accounting-based covenants provides incentives to managers, notably choice of accounting method, lobbying on standard setters' proposals, and accounting earnings management. Although US dominated and latterly increasingly focused on large datasets and quantitative and analytical methods, relevant research is available from a range of methodologies and countries and the paper reflects this variety and identifies both inter-jurisdictional differences and inter-temporal changes in debt contracting practices. Despite the extensive research which is reviewed important areas for new research remain.

Suggested Citation

  • Peter Taylor, 2013. "What do we know about the role of financial reporting in debt contracting and debt covenants?," Accounting and Business Research, Taylor & Francis Journals, vol. 43(4), pages 386-417, August.
    • Handle: RePEc:taf:acctbr:v:43:y:2013:i:4:p:386-417
    DOI: 10.1080/00014788.2013.798551
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00014788.2013.798551
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00014788.2013.798551?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. J. A. Donaldson & T. H. Donaldson, 1982. "The Medium-Term Loan Market," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-06242-3, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nicola Moscariello & Len Skerratt & Michele Pizzo, 2014. "Mandatory IFRS adoption and the cost of debt in Italy and UK," Accounting and Business Research, Taylor & Francis Journals, vol. 44(1), pages 63-82, February.
    2. Saumya Jain & Chandra Prakash Gupta, 2023. "A Study of Impact of IFRS Convergence in India on Debt–Equity Components of Financial Statements," Global Business Review, International Management Institute, vol. 24(5), pages 933-952, October.
    3. Arnold Schneider, 2021. "Does knowledge about a borrowing firm’s internal audit influence bank lending decisions?," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 18(3), pages 304-314, September.
    4. Arnold Schneider, 2018. "Financial expertise on audit committees of loan applicants: a research note to test the effects on lending decisions," Accounting and Business Research, Taylor & Francis Journals, vol. 48(2), pages 225-235, February.
    5. Kusano, Masaki & Sakuma, Yoshihiro & Tsunogaya, Noriyuki, 2016. "Economic consequences of changes in the lease accounting standard: Evidence from Japan," Journal of Contemporary Accounting and Economics, Elsevier, vol. 12(1), pages 73-88.
    6. Intan Suryani Abu Bakar & Arifur Khan & Paul Mather & George Tanewski, 2020. "Board monitoring and covenant restrictiveness in private debt contracts during the global financial crisis," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(S1), pages 661-692, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.

      More about this item

      Statistics

      Access and download statistics

      Corrections

      All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:acctbr:v:43:y:2013:i:4:p:386-417. See general information about how to correct material in RePEc.

      If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

      If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

      If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

      For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RABR20 .

      Please note that corrections may take a couple of weeks to filter through the various RePEc services.

      IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.