Skip to main content
alt

Please enter a keyword and click the arrow to search the site

Or explore one of the areas below

The role of financial reporting in debt contracting and in stewardship

Journal

Accounting and Business Research

Subject

Accounting

Publishing details

Accounting and Business Research 2013 Vol 43:4 p 362-383

Authors / Editors

Shivakumar L

Biographies

Lakshmanan Shivakumar

Publication Year

2013

Abstract

In this paper, I review the role that financial accounting plays in contracts aimed at mitigating agency problems between shareholders and managers and between shareholders and debtholders. The paper discusses the reasons why and how financial accounting numbers are used in debt and stewardship contracting. It further considers the effects of conservatism and fair-value accounting on the relevance of financial reports for contracting. The paper provides some key takeaways from academic literature for accounting practice and regulation.

Keywords

Financial reporting; Contracting; Stewardship; Debt covenants; Fair-value accounting; Conservatism

Available on ECCH

No


Select up to 4 programmes to compare

Select one more to compare
×
subscribe_image_desktop 5949B9BFE33243D782D1C7A17E3345D0

Sign up to receive our latest news and business thinking direct to your inbox

×

Sign up to receive our latest course information and business thinking

Leave your details above if you would like to receive emails containing the latest thought leadership, invitations to events and news about courses that could enhance your career. If you would prefer not to receive our emails, you can still access the case study by clicking the button below. You can opt-out of receiving our emails at any time by visiting: https://london.edu/my-profile-preferences or by unsubscribing through the link provided in our emails. View our Privacy Policy for more information on your rights.