and Exchange Commission's (SEC's) Accounting and Auditing Enforcement Releases (AAERs). Using hazard analysis of actual …-AAER period relative to the pre-AAER period. Our comparative analysis of a group of firms with accounting restatements (but not …

We investigate an unexplored channel—loss given default—through which accounting information can shape the design of … debt contracts. Using a sample of defaulted bonds, we find that borrower accounting information available at contract … this model to construct an accounting-based measure of expected loss given default at the contracting date for a large …

We examine the relation between accounting conservatism and creditor recovery rates for firms in default. We also test … conservative accounting prior to default have significantly higher recovery rates and shorter duration of bankruptcy resolution … bankruptcy. These results suggest accounting conservatism preserves creditor value conditional on default …

Receiving punishment from regulators for corporate fraud can affect financing contracts between a firm and its bank, as … behavior after events of corporate fraud, we find that firms’ bank loans after punishment are not only significantly lower, but … than before, but also higher than those for their non-fraudulent counterparts. In addition, we find that corporate fraud …

defaulting firms but increase their usefulness for identifying non-defaulting firms. Accounting information significantly …