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Keywords: Debt contracting
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Journal Articles
Journal:
Managerial Finance
Managerial Finance (2024) 50 (11): 1895–1919.
Published: 31 July 2024
... to impact lenders’ demand for conservatism, which is reflected in a firm’s financial reports [2] . Due to asymmetric payoffs, debtholders are exposed to downside risks with no upside gains. Accounting conservatism facilitates debt contracting via the timely recognition of economic losses, which alleviates...
