This study investigates the role of public debt financing in shaping accounting conservatism in privately held … companies. We focus on the change in conservatism of private firms following initial issuance of public debt and examine the … effects of agency conflicts between bondholders and shareholders on the change in conservatism. Regression analyses on a large …

variation in conditional conservatism. The contracting theory of conservatism holds that conditional conservatism is an … the contracting theory links debt structure and conservatism. Also, our evidence suggests that the effect of debt on … conservatism can be under or over-stated when firms, or sub-samples of firms, have heterogeneous debt characteristics …

This study examines the association between debt maturity structure and accounting conservatism. Short-maturity debt … financing. As such, debt-contracting demand for accounting conservatism is expected to be lower in the presence of more short …-maturity debt. We find that short-maturity debt is negatively associated with accounting conservatism. As firms could commit to more …