The Role and Characteristics of Accounting-based Performance Pricing in Private Debt Contracts

2002 ◽  
Author(s):  
Ilia D. Dichev ◽  
Anne L. Beatty ◽  
Joseph Peter Weber
Keyword(s):  
Debt Contracts ◽  
Private Debt ◽  
Performance Pricing

scholarly journals Corporate boards and performance pricing in private debt contracts

2018 ◽  
Vol 50 ◽  
pp. 144-162 ◽  
Author(s):  
Intan Suryani Abu Bakar ◽  
Arifur Khan ◽  
Paul Mather ◽  
George Tanewski
Keyword(s):  
Corporate Boards ◽  
Debt Contracts ◽  
Private Debt ◽  
Performance Pricing ◽  
And Performance

Corporate Governance and Performance Pricing in Private Debt Contracts

2012 ◽  
Author(s):  
Intan Suryani Abu Bakar ◽  
Paul R. Mather ◽  
George A. Tanewski
Keyword(s):  
Corporate Governance ◽  
Debt Contracts ◽  
Private Debt ◽  
Performance Pricing ◽  
And Performance

scholarly journals Corporate Boards and Performance Pricing in Private Debt Contracts

2017 ◽  
Author(s):  
Intan Suryani Abu Bakar ◽  
Arifur Khan ◽  
Paul R. Mather ◽  
George A. Tanewski
Keyword(s):  
Corporate Boards ◽  
Debt Contracts ◽  
Private Debt ◽  
Performance Pricing ◽  
And Performance

The Impact of Corporate Governance on the Restrictiveness of Covenants Used in Private Debt Contracts

2011 ◽  
Author(s):  
Intan Suryani Abu Bakar ◽  
Paul R. Mather ◽  
George Tanewski
Keyword(s):  
Corporate Governance ◽  
Debt Contracts ◽  
Private Debt ◽  
The Impact

Determinants of financial covenants and pricing of debt in private debt contracts: the UK evidence

2007 ◽  
Vol 37 (2) ◽  
pp. 151-166 ◽  
Author(s):  
Lance Moir ◽  
Sudi Sudarsanam
Keyword(s):  
Debt Contracts ◽  
Private Debt ◽  
The Uk

Scope for Renegotiation in Private Debt Contracts

2012 ◽  
Author(s):  
Valeri V. Nikolaev
Keyword(s):  
Debt Contracts ◽  
Private Debt

Measuring Financial Covenant Strictness in Private Debt Contracts

2013 ◽  
Author(s):  
Peter R. Demerjian ◽  
Edward L. Owens
Keyword(s):  
Debt Contracts ◽  
Private Debt

The Effects of Debt Contracting on Voluntary Accounting Method Changes

2003 ◽  
Vol 78 (1) ◽  
pp. 119-142 ◽  
Author(s):  
Anne Beatty ◽  
Joseph Weber
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Bank Debt ◽  
Accounting Choice ◽  
Debt Contracts ◽  
Debt Contracting ◽  
Dividend Payment ◽  
Debt Contract ◽  
Performance Pricing ◽  
The Interest Rate

This study examines whether the provisions of a firm's bank debt contracts affect its accounting choices. Starting with a sample of firms who have bank debt and who also voluntarily changed accounting methods, we investigate whether the likelihood that the change in accounting method increased (rather than decreased) the borrower's income depends on (1) whether the change in accounting method affects the bank debt contract calculations, (2) the expected costs of violating the bank debt covenants, (3) whether performance pricing provisions affect the interest rate on the loan, and (4) whether the bank debt contract contains accounting-based dividend restrictions. After controlling for other motives for changing accounting methods, we find that borrowers whose bank debt contracts allow accounting method changes to affect contact calculations are more likely to make income-increasing rather than income-decreasing changes. This increase in likelihood of an income-increasing change is attenuated when expected costs of technical violation are lower because there is a single lender, and occurs for borrowers whose debt contacts have performance pricing and dividend restrictions. These results suggest that incentives to lower interest rates through performance pricing or to retain dividend payment flexibility influence borrowers' accounting method choices, thereby addressing the fundamental questions posed by Fields et al. (2001) of whether, under what circumstances, and how accounting choice matters.

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