Debt covenants and analysts’ information environment

References

• Allen, L., H. Guo, and J. Weintrop. 2008. “The Information Content of Quarterly Earnings in Syndicated Bank Loan Prices.” Asia-Pacific Journal of Accounting and Economics 15: 91–122. doi:10.1080/16081625.2008.9720813.
   Web of Science ®Google Scholar
• Arena, M. P. 2011. “The Corporate Choice between Public Debt, Bank Loans, Traditional Private Debt Placements, and 144A Debt Issues.” Review of Quantitative Finance and Accounting 36: 391–416. doi:10.1007/s11156-010-0182-3.
   Google Scholar
• Armstrong, C. S., W. G. Guay, and J. P. Weber. 2010. “The Role of Information and Financial Reporting in Corporate Governance and Debt Contracting.” Journal of Accounting and Economics 50: 179–234. doi:10.1016/j.jacceco.2010.10.001.
   Web of Science ®Google Scholar
• Bailey, W., H. Li, C. X. Mao, and R. Zhong. 2003. “Regulation Fair Disclosure and Earnings Information: Market, Analyst, and Corporate Responses.” Journal of Finance 58: 2487–2514. doi:10.1046/j.1540-6261.2003.00613.x.
   Web of Science ®Google Scholar
• Ball, R., R. M. Bushman, and F. P. Vasvari. 2008. “The Debt-Contracting Value of Accounting Information and Loan Syndicate Structure.” Journal of Accounting Research 46: 247–287. doi:10.1111/j.1475-679X.2008.00273.x.
   Web of Science ®Google Scholar
• Barron, O. E., D. Byard, C. Kile, and E. J. Riedl. 2002a. “High-Technology Intangibles and Analysts’ Forecasts.” Journal of Accounting Research 40: 289–312. doi:10.1111/1475-679X.00048.
   Web of Science ®Google Scholar
• Barron, O. E., D. Byard, and O. Kim. 2002b. “Changes in Analysts’ Information around Earnings Announcements.” The Accounting Review 77: 821–846. doi:10.2308/accr.2002.77.4.821.
   Web of Science ®Google Scholar
• Barron, O. E., D. Byard, and Y. Yu. 2008. “Earnings Surprises that Motivate Analysts to Reduce Average Forecast Error.” The Accounting Review 83: 303–326. doi:10.2308/accr.2008.83.2.303.
   Web of Science ®Google Scholar
• Barron, O. E., D. Byard, and Y. Yu. 2017. “Earnings Announcement Disclosure and Changes in Analysts’ Information.” Contemporary Account Research 34: 343–373. doi:10.1111/1911-3846.12275.
   Web of Science ®Google Scholar
• Barron, O. E., O. Kim, S. C. Lim, and D. E. Stevens. 1998. “Using Analysts’ Forecasts to Measure Properties of Analysts’ Information Environment.” The Accounting Review 73: 421–433.
   Web of Science ®Google Scholar
• Barth, M. E., R. Kasznilk, and M. F. McNichols. 2001. “Analyst Coverage and Intangible Assets.” Journal of Accounting Research 39: 1–34. doi:10.1111/1475-679X.00001.
   Web of Science ®Google Scholar
• Beatty, A., K. Ramesh, and J. Weber. 2002. “The Importance of Accounting Changes in Debt Contracts: The Cost of Flexibility in Covenant Calculations.” Journal of Accounting and Economics 33: 205–227. doi:10.1016/S0165-4101(02)00046-0.
   Web of Science ®Google Scholar
• Best, R., and H. Zhang. 1993. “Alternative Information Sources and the Information Content of Bank Loans.” Journal of Finance 48: 1507–1522. doi:10.1111/j.1540-6261.1993.tb04765.x.
   Web of Science ®Google Scholar
• Beyer, A., D. A. Cohen, T. Z. Lys, and B. R. Walther. 2010. “The Financial Reporting Environment: Review of the Recent Literature.” Journal of Accounting and Economics 50: 296–343. doi:10.1016/j.jacceco.2010.10.003.
   Web of Science ®Google Scholar
• Bharath, S. T., J. Sunder, and S. Sunder. 2008. “Accounting Quality and Debt Contracting.” The Accounting Review 83: 1–28. doi:10.2308/accr.2008.83.1.1.
   Web of Science ®Google Scholar
• Billet, M., M. Flannery, and J. Garfinket. 1995. “The Effect of Lender Identity on A Borrowing Firm’s Equity Return.” Journal of Finance 50: 699–718. doi:10.1111/j.1540-6261.1995.tb04801.x.
   Web of Science ®Google Scholar
• Boone, A. L., and J. T. White. 2015. “The Effect of Institutional Ownership on Firm Transparency and Information Production.” Journal of Financial Economics 117: 508–533. doi:10.1016/j.jfineco.2015.05.008.
   Web of Science ®Google Scholar
• Breton, G., and R. J. Taffler. 2001. “Accounting Information and Analyst Stock Recommendation Decisions: A Content Analysis Approach.” Accounting and Business Research 31: 91–101. doi:10.1080/00014788.2001.9729604.
   Google Scholar
• Bushee, B., D. Matsumoto, and G. Miller. 2004. “Managerial and Investor Response to Disclosure Regulation: The Case of Reg FD and Conference Calls.” The Accounting Review 79: 617–643. doi:10.2308/accr.2004.79.3.617
   Google Scholar
• Bushman, R. M., A. J. Smith, and R. Wittenberg-Moerma. 2010. “Price Discovery and Dissemination of Private Information by Loan Syndicate Participants.” Journal of Accounting Research 48: 921–972. doi:10.1111/j.1475-679X.2010.00384.x.
   Web of Science ®Google Scholar
• Byard, D., Y. Li, and Y. Yu. 2011. “The Effect of Mandatory IFRS Adoption on Financial Analysts’ Information Environment.” Journal of Accounting Research 49: 69–96. doi:10.1111/joar.2011.49.issue-1.
   Web of Science ®Google Scholar
• Chen, T., and X. Martin. 2011. “Do Bank-Affiliated Analysts Benefit From Lending Relationships?” Journal of Accounting Research 49: 633–675. doi:10.1111/joar.2011.49.issue-3.
   Web of Science ®Google Scholar
• Christensen, H. B., and V. V. Nikolaev. 2012. “Capital versus Performance Covenants in Debt Contracts.” Journal of Accounting Research 50: 75–116. doi:10.1111/j.1475-679X.2011.00432.x.
   Web of Science ®Google Scholar
• Costello, A. M., and R. Wittenberg-Moerman. 2011. “The Impact of Financial Reporting Quality on Debt Contracting: Evidence from Internal Control Weakness Reports.” Journal of Accounting Research 49: 97–136. doi:10.1111/joar.2011.49.issue-1.
   Web of Science ®Google Scholar
• Demerjian, P. R. 2011. “Accounting Standards and Debt Covenants: Has the “Balance Sheet Approach” Led to a Decline in the Use of Balance Sheet Covenants?” Journal of Accounting and Economics 52: 178–202. doi:10.1016/j.jacceco.2011.08.004.
   Web of Science ®Google Scholar
• Demerjian, P. R., and E. L. Owens. 2016. “Measuring the Probability of Financial Covenant Violation in Private Debt Contracts.” Journal of Accounting and Economics 61: 433–447. doi:10.1016/j.jacceco.2015.11.001.
   Web of Science ®Google Scholar
• Dennis, S., and D. J. Mullineaux. 2000. “Syndicated Loans.” Journal of Financial Intermediation 9: 404–426. doi:10.1006/jfin.2000.0298.
   Web of Science ®Google Scholar
• Dichev, I., and D. J. Skinner. 2002. “Large-Sample Evidence on the Debt Covenant Hypothesis.” Journal of Accounting Research 40: 1091–1123. doi:10.1111/1475-679X.00083.
   Web of Science ®Google Scholar
• Francis, J., D. Nanda, and X. Wang. 2006. “Re-Examining the Effects of Regulation Fair Disclosure Using Foreign Listed Firms to Control for Concurrent Shocks.” Journal of Accounting and Economics 41: 271–292. doi:10.1016/j.jacceco.2006.03.002.
   Web of Science ®Google Scholar
• Gintschel, A., and S. Markov. 2004. “The Effectiveness of Regulation FD.” Journal of Accounting and Economics 37: 293–314. doi:10.1016/j.jacceco.2003.12.001.
   Web of Science ®Google Scholar
• Heckman, J. 1979. “Sample Selection Bias as a Specification Error.” Econometrica 47: 153–161. doi:10.2307/1912352.
   Web of Science ®Google Scholar
• Heflin, F., K. R. Subramanyam, and Y. Zhang. 2003. “Regulation FD and the Financial Information Environment: Early Evidence.” The Accounting Review 78: 1–37. doi:10.2308/accr.2003.78.1.1.
   Web of Science ®Google Scholar
• Horton, J., G. Serafeim, and I. Serafeim. 2013. “Does Mandatory IFRS Adoption Improve the Information Environment?” Contemporary Accounting Research 30: 388–423. doi:10.1111/care.2013.30.issue-1.
   Web of Science ®Google Scholar
• Houston, J., and C. James. 1996. “Bank Information Monopolies and the Mix of Private and Public Debt Claims.” The Journal of Finance 51: 1863–1889. doi:10.1111/j.1540-6261.1996.tb05229.x.
   Web of Science ®Google Scholar
• Hugon, A., A. P. Lin, and S. Markov. 2016. “Do Equity Analysts Benefit from Access to High Quality Debt Research?” Working paper. Arizona State University.
   Google Scholar
• Irani, A. J., and I. Karamanou. 2003. “Regulation Fair Disclosure, Analyst Following, and Analyst Forecast Dispersion.” Accounting Horizons 17: 15–29. doi:10.2308/acch.2003.17.1.15.
   Google Scholar
• Ivashina, V. 2009. “Asymmetric Information Effects on Loan Spreads.” Journal of Financial Economics 92: 300–319. doi:10.1016/j.jfineco.2008.06.003.
   Web of Science ®Google Scholar
• Jacob, J., T. Z. Lys, and M. A. Neale. 1999. “Expertise in Forecasting Performance of Security Analysts.” Journal of Accounting and Economics 28: 51–82. doi:10.1016/S0165-4101(99)00016-6.
   Web of Science ®Google Scholar
• Jankiraman, S., S. Radhakrishnan, and R. Szwejkowski. 2007. “Regulation Fair Disclosure and Analysts’ First-Forecast Horizon.” Journal of Accounting, Auditing & Finance 22: 339–378. doi:10.1177/0148558X0702200215.
   Google Scholar
• Jorion, P., Z. Liu, and C. Shi. 2005. “Informational Effects of Regulation FD: Evidence from Rating Agencies.” Journal of Financial Economics 76: 309–330. doi:10.1016/j.jfineco.2004.05.001.
   Web of Science ®Google Scholar
• Kim, J. B., and B. Y. Song. 2011. “Auditor Quality and Ownership Structure of Syndicated Loan Deals. Auditing.” A Journal of Practice and Theory 30: 71–99. doi:10.2308/ajpt-10144.
   Google Scholar
• Kirk, M. P., and J. D. Vincent. 2014. “Professional Investor Relations within the Firm.” The Accounting Review 89: 1421–1452. doi:10.2308/accr-50724.
   Web of Science ®Google Scholar
• Kothari, S. P., A. J. Leone, and C. E. Wasley. 2005. “Performance Matched Discretionary Accrual Measures.” Journal of Accounting and Economics 39: 163–197. doi:10.1016/j.jacceco.2004.11.002.
   Web of Science ®Google Scholar
• Larcker, D. F., and T. O. Rusticus. 2010. “On the Use of Instrumental Variables in Accounting Research.” Journal of Accounting and Economics 49: 186–205. doi:10.1016/j.jacceco.2009.11.004.
   Web of Science ®Google Scholar
• Lee, E., N. Strong, and Z. J. Zhu. 2014. “Did Regulation Fair Disclosure, SOX, and Other Analyst Regulations Reduce Security Mispricing?” Journal of Accounting Research 52: 733–774. doi:10.1111/joar.2014.52.issue-3.
   Web of Science ®Google Scholar
• Leftwich, R. 1983. “Accounting Information in Private Markets: Evidence from Private Lending Agreements.” The Accounting Review 58: 23–42.
   Web of Science ®Google Scholar
• Lennox, C. S., J. R. Francis, and Z. Wang. 2012. “Selection Models in Accounting Research.” The Accounting Review 87: 589–616. doi:10.2308/accr-10195.
   Web of Science ®Google Scholar
• Li, N., F. P. Vasvari, and R. Wittenberg-Moerman. 2016. “Dynamic Threshold Values in Earnings-Based Covenants. .” Journal of Accounting and Economics 61: 605–629. doi:10.1016/j.jacceco.2015.07.004.
   Web of Science ®Google Scholar
• Liu, X. G., and R. Natarajan. 2012. “The Effect of Financial Analysts’ Strategic Behavior on Analysts’ Forecast Dispersion.” The Accounting Review 87: 2123–2149. doi:10.2308/accr-50212.
   Web of Science ®Google Scholar
• Lummer, S. L., and J. J. McConnell. 1989. “Further Evidence on the Bank Lending Process and the Capital-Market Response to Bank Loan Agreements.” Journal of Financial Economics 25: 99–122. doi:10.1016/0304-405X(89)90098-6.
   Web of Science ®Google Scholar
• Mohanram, P. S., and S. V. Sunder. 2006. “How Has Regulation FD Affected the Operations of Financial Analysts?” Contemporary Accounting Research 23: 491–525. doi:10.1506/7H81-8J8X-C6RT-UVJP.
   Web of Science ®Google Scholar
• Mora, N. 2015. “Lender Exposure and Effort in the Syndicated Loan Market.” Journal of Risk and Insurance 82: 205–252. doi:10.1111/jori.v82.1.
   Web of Science ®Google Scholar
• Nikolaev, V. 2010. “Debt Covenants and Accounting Conservatism.” Journal of Accounting Research 48: 137–175. doi:10.1111/j.1475-679X.2009.00359.x.
   Web of Science ®Google Scholar
• Nini, G., D. Smith, and A. Sufi. 2009. “Creditor Control Rights and Firm Investment Policy.” Journal of Financial Economics 92: 400–420. doi:10.1016/j.jfineco.2008.04.008.
   Web of Science ®Google Scholar
• Nini, G., D. Smith, and A. Sufi. 2012. “Creditor Control Rights, Corporate Governance, and Firm Value.” Reviwe of Financial Studies 25: 1719–1761. doi.org/10.1093/rfs/hhs007.
   Web of Science ®Google Scholar
• O’Brien, P. C., and R. Bhushan. 1990. “Analyst following and Institutional Ownership.” Journal of Accounting Research 28: 55–76. doi:10.2307/2491247.
   Web of Science ®Google Scholar
• Palepu, K. G., P. M. Healy, and E. Peek. 2013. Business Analysis and Valuation: IFRS Edition. UK: Cengage Learning.
   Google Scholar
• Petersen, M. A. 2009. “Estimating Standard Errors in Finance Sets: Comparing Approaches.” Review of Financial Studies 22: 435–480. doi:10.1093/rfs/hhn053.
   Web of Science ®Google Scholar
• Previts, G. J., R. J. Bricker, T. R. Robinson, and S. J. Young. 1994. “A Content Analysis of Sell-Side Financial Analyst Company Reports.” Accounting Horizons 8: 55–70.
   Google Scholar
• Rhodes, A. 2016. “The Relation between Earnings-Based Measures in Firm Debt Contract and CEO Pay Sensitivity to Earnings.” Journal of Accounting and Economics 61: 1–22. doi:10.1016/j.jacceco.2015.11.002.
   Web of Science ®Google Scholar
• Roberts, M., and A. Sufi. 2009. “Control Rights and Capital Structure: An Empirical Investigation.” Journal of Finance 64: 1657–1695. doi:10.1111/j.1540-6261.2009.01476.x.
   Web of Science ®Google Scholar
• Rogers, R. K., and J. Grant. 1997. “Content Analysis of Information Cited in Reports of Sell-Side Financial Analysts.” Journal of Financial Statement Analysis 3: 17–30.
   Google Scholar
• Smith, C. W., and J. B. Warner. 1979. “On Financial Contracting: An Analysis of Bond Covenants.” Journal of Financial Economics 7: 117–161. doi:10.1016/0304-405X(79)90011-4.
   Web of Science ®Google Scholar
• Spiceland, C. P., L. L. Yang, and J. H. Zhang. 2016. “Accounting Quality, Debt Covenant Design, and the Cost of Debt.” Review of Quantitative Finance and Accounting 47: 1271–1302. doi:10.1007/s11156-015-0538-9.
   Web of Science ®Google Scholar
• Sufi, A. 2007. “Information Asymmetry and Financing Arrangements: Evidence from Syndicated Loans.” Journal of Finance 62: 629–668. doi:10.1111/j.1540-6261.2007.01219.x.
   Web of Science ®Google Scholar
• Watts, R., and J. Zimmerman. 1986. Positive Accounting Theory. Englewood Cliffs, NY: Prentice-Hall.
   Google Scholar
• Watts, R. L. 2003. “Conservatism in Accounting, Part I: Explanations and Implications.” Accounting Horizons 17: 207–221. doi:10.2308/acch.2003.17.3.207.
   Google Scholar