Chen, Jeff Zeyun; Lobo, Gerald J.; Wang, Yanyan; Yu, Lisheng - In: Journal of Banking & Finance 37 (2013) 12, pp. 4989-5006
We examine the relation between the use of collateral and financial reporting conservatism for a sample of Chinese firms. In the absence of flexibility in risk pricing through interest rates and strong contract enforcement in China, we find that lenders reduce collateral requirements from more...