We study how recognition versus disclosure affects the control function of accounting through the use of debt covenants. While research shows that recognition affects the value-relevance of reported amounts, the effect on contracting is unclear. We examine whether covenants changed around SFAS...

We document a novel trend in syndicated lending where some participants voluntarily waive their rights to access borrowers’ private information. Although these public-side lenders are unable to use private information to evaluate borrowers’ creditworthiness, forgoing their access to private...