Study The benefits of accounting conservatism To lenders
Journal Title: International Research Journal of Applied and Basic Sciences - Year 2013, Vol 6, Issue 10
Abstract
This paper examines the ex post and ex ante benefits of accounting conservatism to lenders and borrowers in the debt contracting process. I expect conservatism to benefit lenders ex post through the timely signaling of default risk, as manifested by accelerated covenant violations, and to benefit borrowers ex ante through lower initial interest rates. Consistent with these predictions, I find that more conservative borrowers are more likely to violate debt covenants following a negative price shock, and that lenders offer lower interest rates to more conservative borrowers.
Authors and Affiliations
Mohamadreza Abdoli| Departement of Accounting, Shahrood Branch, Islamic Azad University, Shahrood, Iran, email :mra830@yahoo.com, elahe Pahlevani fard| Master of Accounting, Shahrood Branch, Islamic Azad University, Shahrood, Iran. pahlevanielahe@gmail.com, Mojtaba Moshdeei| Professor of Accounting, Shahrood Branch, Islamic Azad University, Shahrood, Iran
Keywords
Related Articles
- EP ID EP6289
- DOI -
- Views 259
- Downloads 8
Evaluation of factorsinfluencing knowledgemanagement in physical education offices
Knowledge management is a new viewpoint for organization which believes that if organizations want to be successful, they must access to knowledge and have a deep understanding of it in all layers. Thisstudy evaluation o...
Investigation of organizational DNA in Esfahan Province sport and youth offices according to Honold and Silverman Model
The aim of the present research was analyzing organizational DNA of Esfahan Province sport and youth offices according to Honold and Silverman model in cultural activities and affairs. This research was descriptive-surve...
Surveying the Relationship betweenManagement Style and Exploiting Information Technology in Organization (The Case Study of Electricity Distribution Company of West Azarbaijan)
The current study strives to investigate the relationship between management style and exploiting the information technology in West Azarbaijan Electricity Distribution Company. The study is applied, descriptive and surv...
Studying the effect of corporate governance on awareness of accounting profit for companies accepted in Tehran Stock Exchange
This paper aims at examining the relationship between corporate governance and awareness of accounting profit for companies accepted in Tehran Stock Exchange. This research has some variables including management ownersh...
The Shining Rays of the Realism fromThe Room
This is a paper on realistic elements in Harold Pinter’s The Room (1983). According to the most eminent critics, this contemporary play belongs to the post modern era. There are some characteristics of the Realist School...