Browsing Arts (Faculty of) by Subject "debt contract"
Now showing items 1-2 of 2
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Accounting Conservatism and the Consequences of Covenant Violations
(University of Waterloo, 2011-12-20)Recent studies document that covenant violations intensify the conflicts of interest between lenders and borrowers, and lead to greater restrictions on borrowing firms’ financing and investment activities (Chava and Roberts, ... -
The Treatment of Accounting Changes in Covenants and Debt Contracting Efficiency
(University of Waterloo, 2020-08-04)Debt contracts contain accounting-based covenants that could be affected by changes in generally accepted accounting principles (GAAP). There are three types of contractual treatment of GAAP changes: excluding GAAP changes ...