Full metadata record
| DC Field | Value | Language |
|---|---|---|
| dc.contributor | School of Accounting and Finance | en_US |
| dc.creator | Zhu, Xindong | - |
| dc.identifier.uri | https://theses.lib.polyu.edu.hk/handle/200/5902 | - |
| dc.language | English | en_US |
| dc.publisher | Hong Kong Polytechnic University | - |
| dc.rights | All rights reserved | en_US |
| dc.title | Debt maturity and conservatism | en_US |
| dcterms.abstract | In this thesis, I investigate the empirical relation between a firm's short-term debt and conservatism in financial reporting. As both are costly mechanisms to resolve the agency problem between the shareholders and the debtholders, I expect that they act as substitutes if managers choose them in a cost-effective way. I find a negative association between the change in short-term debt and in conservatism, which is consistent with the expectation. The result is robust to alternative measures of short-term debt and accounting conservatism. I further examine the individual and joint effect of short-term debt and conservatism on the firm's cost of debt. I find that the increase of short-term debt or of conservatism is associated with the decrease of the firm's cost of debt. More importantly, I find that short-term debt and accounting conservatism act as substitutes in reducing the firm's cost of debt. The results are robust after controlling for cross-sectional correlations, heteroscedasticity and autocorrelations. Overall, these results suggest that short-term debt and conservatism both act as monitoring mechanisms to resolve agency problem in terms of lower cost of debt and firms tend to substitute these two mechanisms in a rational cost-effective way. | en_US |
| dcterms.extent | viii, 164 leaves : ill. ; 30 cm. | en_US |
| dcterms.isPartOf | PolyU Electronic Theses | en_US |
| dcterms.issued | 2010 | en_US |
| dcterms.educationalLevel | All Doctorate | en_US |
| dcterms.educationalLevel | Ph.D. | en_US |
| dcterms.LCSH | Hong Kong Polytechnic University -- Dissertations | en_US |
| dcterms.LCSH | Corporate debt | en_US |
| dcterms.LCSH | Financial statements | en_US |
| dcterms.accessRights | open access | en_US |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| b23930706.pdf | For All Users | 864.24 kB | Adobe PDF | View/Open |
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