This study finds that the requirement of ASC 842 for firms to capitalize operating leases in financial statements beginning in 2019 resulted in firms affected by the standard reducing existing debt amounts on average between 7% and 10% relative to unaffected firms. We also find that firms with...

This study uses passage of the Dodd-Frank Act as a setting to examine whether changes in legal liability exposure faced by credit rating agencies affect the number of financial statement information signals required before rating changes. For upgrades, we predict and find that the greater legal...

I examine the liquidity effect of the implementation of ASC 606: Revenue from contracts with customers. I find that the implementation of ASC 606 increases liquidity. Next, I examine the channels through which the implementation of the standard affects liquidity. Theory suggests that the...