黑龙江科技大学MPAcc

课程名称:外文专业学术论文（四号字，宋体，不加粗）

Accounting Quality and Debt Contracting

ABSTRACT: We study the role of borrower accounting quality in debt contracting. Specifically, we examine how accounting quality affects the borrower's choice of private versus public debt market and how the design of debt contracts vary with accounting quality in the two markets. We find that accounting quality affects the choice of the market, with poorer accounting quality borrowers preferring private debt, i.e., bank loans. This is consistent with banks possessing superior information access and processing abilities that reduce adverse selection costs for borrowers. We also find that accounting quality has an economically significant but differential impact on contract design in the two markets consistent with differences in re-contracting flexibility across the two markets. In the case of private debt, since there is greater re-contracting flexibility, both the price (i.e., interest) and non-price (i.e., maturity and collateral) terms are significantly more stringent for poorer accounting quality borrowers, unlike public debt where only the price terms are more stringent. The impact of accounting quality on interest spreads of public debt is 2.5 times that of the private debt, since the price terms alone reflect the variation in accounting quality.

Keywords: accounting quality; accruals; debt contracts; loan terms; public debt;private debt; loans; bonds.

I. INTRODUCTION

Debt financing is a predominant source of new external funding for U.S. corporations. For instance, in 2005 the total new capital raised in the syndicated loan market (private debt) was $1,500 billion, and the corporate bond issuance amounted to

II. RELATED LITERATURE

REFERENCES

[1] Bharath, S.T., J. Sunder, S.V. Sunder. Accounting Quality and Debt Contracting [J].The Accounting Review, 2008,83(1):1-28

[2] Roychowdhury S. Earnings Management through Real Activities Manipulation [J]. Journal of Accounting and Economics, 2006, 42(3):335-370

备注：如果论文中有图和表请参照下列要求，

（1）图

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Figure 1 The Mike Co., Ltd.’s improved purchasing flow chart

（2）表

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Table1 Cost profit margin of the Mike Co., Ltd. (￥)

(Source: The Mike Machine Tool Manufacturing Co., Ltd.)

图与表中的所有文字采用5号字体。

英文论文模板