Lenders reduce their monitoring efforts after hedging their credit risk exposure through credit default swap (CDS) contracts, which are akin to insurance against borrowers' adverse credit events. In this study, we examine whether, upon observing the reduced lender monitoring following CDS...

This study examines the impact of mandatory IFRS adoption on IPO underpricing and the relative amount of IPO capital raised in foreign markets. Using a difference-in-differences design, we find a decrease in IPO underpricing and an increase in the relative proceeds from foreign markets following...

This study examines the role of financial reporting conservatism in mitigating under-investment problems. Recognizing that volatile cash flows increase the need to access external capital markets, and that agency conflicts and information asymmetry make external capital costlier than internal...

Hong, Hung, and Lobo (2014, HHL) document a decrease in IPO underpricing and an increase in the relative proceeds from foreign markets following the 2005 mandatory IFRS adoption. In a study that re-examines the impact of mandatory IFRS adoption on IPO underpricing, Byard, Darrough, and Suh...