Matches in SemOpenAlex for { <https://semopenalex.org/work/W2114881336> ?p ?o ?g. }
Showing items 1 to 82 of
82
with 100 items per page.
- W2114881336 abstract "Operating leases have grown significantly as a source of corporate financing over the last 30 years. Their off-balance sheet treatment, which may in part explain their popularity, raises concern that financial risk may be misjudged and capital misallocated. Prior research evidence on the above issue is mixed. To improve reporting transparency, regulators propose a new accounting concept, right of use, which will add the present value of most leases to the balance sheet. We examine the effect of operating leases on loan pricing by banks, a sophisticated financial statement user. Since leases are a potential debt substitute, we expect them to be important in our setting. With loan spreads as the dependent variable, we test the differential explanatory power and model fit of as-reported financial ratios versus financial ratios adjusted for the capitalization of operating leases. We find that lease-adjusted financial ratios better explain loan spreads, especially for larger lenders. Our results also suggest that retailer leases that are closer in substance to rental agreements than financed asset purchases are less relevant for credit risk assessments. Thus we conclude that banks not only price operating leases, on average, but also make distinctions about which leases should be priced. Second, we explore the role of credit rating agencies and confirm that credit ratings also reflect capitalized operating leases, and find support for an informational role for others’ credit assessments. However, unlike banks, rating agencies appear to capitalize all operating leases mechanically. Overall, our results suggest that banks and rating agencies adjust for the off-balance sheet presentation of operating leases and, at least in the case of banks, attempt to do so to reflect the underlying economics of the leases. This evidence lessens concern over the potential negative consequences of existing operating lease accounting and raises concern over proposed accounting that capitalizes all leases regardless of their economic characteristics." @default.
- W2114881336 created "2016-06-24" @default.
- W2114881336 creator A5000098287 @default.
- W2114881336 creator A5047634561 @default.
- W2114881336 creator A5075786019 @default.
- W2114881336 creator A5080699885 @default.
- W2114881336 date "2012-01-01" @default.
- W2114881336 modified "2023-10-03" @default.
- W2114881336 title "Operating Leases and Credit Assessments" @default.
- W2114881336 cites W1538751824 @default.
- W2114881336 cites W1566671128 @default.
- W2114881336 cites W1786711956 @default.
- W2114881336 cites W1830719945 @default.
- W2114881336 cites W2020154485 @default.
- W2114881336 cites W2024666724 @default.
- W2114881336 cites W2061057155 @default.
- W2114881336 cites W2066948865 @default.
- W2114881336 cites W2078775178 @default.
- W2114881336 cites W2095517248 @default.
- W2114881336 cites W2101687790 @default.
- W2114881336 cites W2104003105 @default.
- W2114881336 cites W2108366499 @default.
- W2114881336 cites W2112352537 @default.
- W2114881336 cites W2135985742 @default.
- W2114881336 cites W2146616257 @default.
- W2114881336 cites W2155561548 @default.
- W2114881336 cites W2164483380 @default.
- W2114881336 cites W2170621663 @default.
- W2114881336 cites W2232999985 @default.
- W2114881336 cites W2317446573 @default.
- W2114881336 cites W3034039979 @default.
- W2114881336 cites W3121456122 @default.
- W2114881336 cites W3122621141 @default.
- W2114881336 cites W3123315994 @default.
- W2114881336 cites W3124163990 @default.
- W2114881336 cites W3124850003 @default.
- W2114881336 cites W3178815709 @default.
- W2114881336 cites W4230474071 @default.
- W2114881336 cites W4238649416 @default.
- W2114881336 doi "https://doi.org/10.2139/ssrn.1115924" @default.
- W2114881336 hasPublicationYear "2012" @default.
- W2114881336 type Work @default.
- W2114881336 sameAs 2114881336 @default.
- W2114881336 citedByCount "13" @default.
- W2114881336 countsByYear W21148813362012 @default.
- W2114881336 countsByYear W21148813362013 @default.
- W2114881336 countsByYear W21148813362014 @default.
- W2114881336 countsByYear W21148813362015 @default.
- W2114881336 countsByYear W21148813362018 @default.
- W2114881336 countsByYear W21148813362020 @default.
- W2114881336 crossrefType "journal-article" @default.
- W2114881336 hasAuthorship W2114881336A5000098287 @default.
- W2114881336 hasAuthorship W2114881336A5047634561 @default.
- W2114881336 hasAuthorship W2114881336A5075786019 @default.
- W2114881336 hasAuthorship W2114881336A5080699885 @default.
- W2114881336 hasBestOaLocation W21148813362 @default.
- W2114881336 hasConcept C144133560 @default.
- W2114881336 hasConcept C162118730 @default.
- W2114881336 hasConcept C162324750 @default.
- W2114881336 hasConcept C39432304 @default.
- W2114881336 hasConceptScore W2114881336C144133560 @default.
- W2114881336 hasConceptScore W2114881336C162118730 @default.
- W2114881336 hasConceptScore W2114881336C162324750 @default.
- W2114881336 hasConceptScore W2114881336C39432304 @default.
- W2114881336 hasLocation W21148813361 @default.
- W2114881336 hasLocation W21148813362 @default.
- W2114881336 hasOpenAccess W2114881336 @default.
- W2114881336 hasPrimaryLocation W21148813361 @default.
- W2114881336 hasRelatedWork W1502198272 @default.
- W2114881336 hasRelatedWork W1986173648 @default.
- W2114881336 hasRelatedWork W1998718379 @default.
- W2114881336 hasRelatedWork W2006758266 @default.
- W2114881336 hasRelatedWork W2017540542 @default.
- W2114881336 hasRelatedWork W2073254488 @default.
- W2114881336 hasRelatedWork W2084227502 @default.
- W2114881336 hasRelatedWork W2405441039 @default.
- W2114881336 hasRelatedWork W2582704060 @default.
- W2114881336 hasRelatedWork W2899084033 @default.
- W2114881336 isParatext "false" @default.
- W2114881336 isRetracted "false" @default.
- W2114881336 magId "2114881336" @default.
- W2114881336 workType "article" @default.