Business Commons^™

Three Essays In Accounting Regulation And Debt Contract Characteristics, Bryan Graden

Arts & Sciences Electronic Theses and Dissertations

This dissertation is comprised of three essays relating to accounting regulation and debt contracting. The first essay is designed to draw inferences about lenders' demand for lease accounting rules in light of proposed lease accounting standard changes. I study changes in lease-related debt covenants surrounding the adoption of Statement of Financial Accounting Standards 13: Accounting for Leases in 1976. I find that lenders are significantly less likely to inhibit leasing activity via lease restrictions after SFAS 13 adoption and that lenders are significantly more likely to modify debt covenants to capitalize operating leases across time in the post-SFAS 13-adoption period. …