The Associations between Accounting Standard Relevance and Loan Contracting-Evidences from U.S. Syndicated Loan Market

• Main Authors: Han-Wen Cheng, 鄭涵文
• Other Authors: Wei-Ren Yao
• Format: Others
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/qw4s9t

碩士 === 國立東華大學 === 會計與財務碩士學位學程 === 105 === This study examines the associations between accounting standard relevance and loan contractual terms (interest rate, financial covenants, and collateral). Utilizing the sample from U.S. syndicated loan market during years 1990 to 2005, empirical results indicate that the extent of accounting standard relevance is positively associated with loan spreads, and negatively associated with the use of accounting-based financial covenants. My findings imply that the accounting standard relevance reduces the role of contractibility of financial statement and provide policy implication for regulators, in particular FASB and IASB.