We examine the relation between accounting quality and debt concentration in corporate capital structures (i.e., firms … strong link between debt concentration and creditors' coordination costs and the importance of accounting quality in reducing … these costs, we hypothesize that firms with higher accounting quality have less concentrated debt structures. Measuring …

). As firm value is non‐contractible by assumption, an incentive contract is written on accounting income. The manager … with regard to accounting discretion. Third, he needs to specify contracting details. If an internal information system is … environment becomes more volatile. Holding either the IIS choice or the accounting system choice constant, we observe the …