{"id":"https://openalex.org/W2808178233","doi":"https://doi.org/10.2308/accr-52204","title":"Do Debt Covenants Constrain Borrowings Prior to Violation? Evidence from SFAS 160","display_name":"Do Debt Covenants Constrain Borrowings Prior to Violation? Evidence from SFAS 160","publication_year":2018,"publication_date":"2018-07-01","ids":{"openalex":"https://openalex.org/W2808178233","doi":"https://doi.org/10.2308/accr-52204","mag":"2808178233"},"language":"en","primary_location":{"id":"doi:10.2308/accr-52204","doi":"https://doi.org/10.2308/accr-52204","is_oa":false,"landing_page_url":"https://doi.org/10.2308/accr-52204","pdf_url":null,"source":{"id":"https://openalex.org/S160506855","display_name":"The Accounting Review","issn_l":"0001-4826","issn":["0001-4826","1558-7967"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","fnege-1-star","ft50","jufo-3","norway-2","poland-200","russia-white-list-1","utd24","vabb-shw"],"host_organization":"https://openalex.org/P4310316290","host_organization_name":"American Accounting Association","host_organization_lineage":["https://openalex.org/P4310316290"],"host_organization_lineage_names":["American Accounting Association"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"The Accounting Review","raw_type":"journal-article"},"volume":null,"type":"article","indexed_in":["crossref"],"open_access":{"is_oa":false,"oa_status":"closed","oa_url":null,"any_repository_has_fulltext":false},"authorships":[{"author_position":"first","author":{"id":"https://openalex.org/A5033701958","display_name":"Moshe Cohen","orcid":null,"observed_orcids":[]},"institutions":[],"countries":[],"is_corresponding":false,"raw_author_name":"Moshe Cohen","raw_affiliation_strings":["Gravity Technologies"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"Gravity Technologies","institution_ids":[]}]},{"author_position":"middle","author":{"id":"https://openalex.org/A5042830690","display_name":"Sharon P. Katz","orcid":"https://orcid.org/0000-0001-5568-3329","observed_orcids":["https://orcid.org/0000-0001-5568-3329"]},"institutions":[{"id":"https://openalex.org/I102272798","display_name":"INSEAD","ror":"https://ror.org/00ghzk478","country_code":"FR","type":"education","lineage":["https://openalex.org/I102272798"]},{"id":"https://openalex.org/I4210149427","display_name":"INSEAD","ror":"https://ror.org/05qxkh644","country_code":"AE","type":"education","lineage":["https://openalex.org/I102272798","https://openalex.org/I4210149427"]},{"id":"https://openalex.org/I4210152270","display_name":"INSEAD","ror":"https://ror.org/05ynf4333","country_code":"SG","type":"education","lineage":["https://openalex.org/I102272798","https://openalex.org/I4210152270"]}],"countries":["AE","FR","SG"],"is_corresponding":false,"raw_author_name":"Sharon P. Katz","raw_affiliation_strings":["INSEAD"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"INSEAD","institution_ids":["https://openalex.org/I102272798","https://openalex.org/I4210149427","https://openalex.org/I4210152270"]}]},{"author_position":"middle","author":{"id":"https://openalex.org/A5063876599","display_name":"Sunay Mutlu","orcid":"https://orcid.org/0000-0001-5011-272X","observed_orcids":["https://orcid.org/0000-0001-5011-272X"]},"institutions":[{"id":"https://openalex.org/I172980758","display_name":"Kennesaw State University","ror":"https://ror.org/00jeqjx33","country_code":"US","type":"education","lineage":["https://openalex.org/I172980758"]}],"countries":["US"],"is_corresponding":false,"raw_author_name":"Sunay Mutlu","raw_affiliation_strings":["Kennesaw State University"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"Kennesaw State University","institution_ids":["https://openalex.org/I172980758"]}]},{"author_position":"last","author":{"id":"https://openalex.org/A5052992050","display_name":"Gil Sadka","orcid":"https://orcid.org/0000-0001-7948-7074","observed_orcids":["https://orcid.org/0000-0001-7948-7074"]},"institutions":[{"id":"https://openalex.org/I162577319","display_name":"The University of Texas at Dallas","ror":"https://ror.org/049emcs32","country_code":"US","type":"education","lineage":["https://openalex.org/I162577319"]}],"countries":["US"],"is_corresponding":false,"raw_author_name":"Gil Sadka","raw_affiliation_strings":["The University of Texas at Dallas"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"The University of Texas at Dallas","institution_ids":["https://openalex.org/I162577319"]}]}],"institutions":[],"countries_distinct_count":4,"institutions_distinct_count":5,"corresponding_author_ids":[],"corresponding_institution_ids":[],"apc_list":null,"apc_paid":null,"fwci":6.6194,"has_fulltext":false,"cited_by_count":21,"citation_normalized_percentile":{"value":0.96068473,"is_in_top_1_percent":false,"is_in_top_10_percent":true},"cited_by_percentile_year":{"min":89,"max":98},"biblio":{"volume":"94","issue":"2","first_page":"133","last_page":"156"},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T10019","display_name":"Corporate Finance and Governance","score":0.9564999938011169,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},"topics":[{"id":"https://openalex.org/T10019","display_name":"Corporate Finance and Governance","score":0.9564999938011169,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T10081","display_name":"Auditing, Earnings Management, Governance","score":0.010900000110268593,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T12509","display_name":"Corporate Insolvency and Governance","score":0.008700000122189522,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}}],"keywords":[{"id":"https://openalex.org/keywords/debt-covenants","display_name":"debt covenants","score":0.9990000128746033},{"id":"https://openalex.org/keywords/covenant-violations","display_name":"covenant violations","score":0.6940000057220459},{"id":"https://openalex.org/keywords/financial-leverage","display_name":"leverage","score":0.7670000195503235},{"id":"https://openalex.org/keywords/financial-crises","display_name":"financial crisis","score":0.6439999938011169},{"id":"https://openalex.org/keywords/financial-distress","display_name":"financial distress","score":0.30799999833106995}],"concepts":[{"id":"https://openalex.org/C153083717","wikidata":"https://www.wikidata.org/wiki/Q6535263","display_name":"Leverage (statistics)","level":2,"score":0.8502881526947021},{"id":"https://openalex.org/C136800757","wikidata":"https://www.wikidata.org/wiki/Q6335929","display_name":"Covenant","level":2,"score":0.8263115286827087},{"id":"https://openalex.org/C120527767","wikidata":"https://www.wikidata.org/wiki/Q3196867","display_name":"Debt","level":2,"score":0.748895525932312},{"id":"https://openalex.org/C556758197","wikidata":"https://www.wikidata.org/wiki/Q580018","display_name":"Monetary economics","level":1,"score":0.6506155729293823},{"id":"https://openalex.org/C144133560","wikidata":"https://www.wikidata.org/wiki/Q4830453","display_name":"Business","level":0,"score":0.5861770510673523},{"id":"https://openalex.org/C73283319","wikidata":"https://www.wikidata.org/wiki/Q1416617","display_name":"Financial system","level":1,"score":0.42732858657836914},{"id":"https://openalex.org/C149933338","wikidata":"https://www.wikidata.org/wiki/Q950816","display_name":"Capital structure","level":3,"score":0.41467756032943726},{"id":"https://openalex.org/C121955636","wikidata":"https://www.wikidata.org/wiki/Q4116214","display_name":"Accounting","level":1,"score":0.3754170536994934},{"id":"https://openalex.org/C162324750","wikidata":"https://www.wikidata.org/wiki/Q8134","display_name":"Economics","level":0,"score":0.33605122566223145},{"id":"https://openalex.org/C10138342","wikidata":"https://www.wikidata.org/wiki/Q43015","display_name":"Finance","level":1,"score":0.2374650537967682},{"id":"https://openalex.org/C199539241","wikidata":"https://www.wikidata.org/wiki/Q7748","display_name":"Law","level":1,"score":0.11248224973678589},{"id":"https://openalex.org/C17744445","wikidata":"https://www.wikidata.org/wiki/Q36442","display_name":"Political science","level":0,"score":0.07129538059234619},{"id":"https://openalex.org/C119857082","wikidata":"https://www.wikidata.org/wiki/Q2539","display_name":"Machine learning","level":1,"score":0.0},{"id":"https://openalex.org/C41008148","wikidata":"https://www.wikidata.org/wiki/Q21198","display_name":"Computer science","level":0,"score":0.0}],"mesh":[],"locations_count":2,"locations":[{"id":"doi:10.2308/accr-52204","doi":"https://doi.org/10.2308/accr-52204","is_oa":false,"landing_page_url":"https://doi.org/10.2308/accr-52204","pdf_url":null,"source":{"id":"https://openalex.org/S160506855","display_name":"The Accounting Review","issn_l":"0001-4826","issn":["0001-4826","1558-7967"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a-star","anvur-class-a","anvur-scientific","cwts-core","fnege-1-star","ft50","jufo-3","norway-2","poland-200","russia-white-list-1","utd24","vabb-shw"],"host_organization":"https://openalex.org/P4310316290","host_organization_name":"American Accounting Association","host_organization_lineage":["https://openalex.org/P4310316290"],"host_organization_lineage_names":["American Accounting Association"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"The Accounting Review","raw_type":"journal-article"},{"id":"pmh:oai:digitalcommons.kennesaw.edu:mngt_facpubs-1001","doi":null,"is_oa":false,"landing_page_url":"https://digitalcommons.kennesaw.edu/mngt_facpubs/2","pdf_url":null,"source":{"id":"https://openalex.org/S4377196456","display_name":"DigitalCommons - Kennesaw State University (Kennesaw State University)","issn_l":null,"issn":null,"is_oa":false,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/I172980758","host_organization_name":"Kennesaw State University","host_organization_lineage":["https://openalex.org/I172980758"],"host_organization_lineage_names":[],"type":"repository"},"license":null,"license_id":null,"version":"submittedVersion","is_accepted":false,"is_published":false,"raw_source_name":"(HIDDEN) Management & Entrepreneurship Faculty Publications","raw_type":"text"}],"best_oa_location":null,"sustainable_development_goals":[],"sustainable_development_goals_aurora":[],"study_designs":[],"awards":[],"funders":[],"has_content":{"pdf":false,"grobid_xml":false},"content_urls":null,"referenced_works_count":39,"referenced_works":["https://openalex.org/W90311603","https://openalex.org/W119367497","https://openalex.org/W201438956","https://openalex.org/W1523000468","https://openalex.org/W1534868934","https://openalex.org/W1873419600","https://openalex.org/W1978282661","https://openalex.org/W2008301397","https://openalex.org/W2078775178","https://openalex.org/W2095686833","https://openalex.org/W2105973145","https://openalex.org/W2111472741","https://openalex.org/W2124115302","https://openalex.org/W2149088624","https://openalex.org/W2341795385","https://openalex.org/W2513889133","https://openalex.org/W2580010294","https://openalex.org/W2729570016","https://openalex.org/W3121412040","https://openalex.org/W3121620836","https://openalex.org/W3121786372","https://openalex.org/W3121797308","https://openalex.org/W3122332694","https://openalex.org/W3122493112","https://openalex.org/W3122623081","https://openalex.org/W3122720032","https://openalex.org/W3122853031","https://openalex.org/W3123799188","https://openalex.org/W3124046399","https://openalex.org/W3124173461","https://openalex.org/W3124183409","https://openalex.org/W3125011891","https://openalex.org/W3125654204","https://openalex.org/W3125744792","https://openalex.org/W3125829376","https://openalex.org/W3126076569","https://openalex.org/W4233445431","https://openalex.org/W4242541877","https://openalex.org/W4243946340"],"related_works":["https://openalex.org/W2750340679","https://openalex.org/W4289822883","https://openalex.org/W4206544625","https://openalex.org/W7095578373","https://openalex.org/W7125700910","https://openalex.org/W7095191664","https://openalex.org/W4285090794","https://openalex.org/W801540935","https://openalex.org/W4220872783","https://openalex.org/W3122720032"],"abstract_inverted_index":{"ABSTRACT":[0],"Prior":[1],"evidence":[2],"shows":[3],"a":[4],"reduction":[5],"in":[6,70,79,104,112,132],"leverage":[7,19,47],"after":[8,109],"covenant":[9,38,92],"violations,":[10],"but":[11],"we":[12,27],"do":[13],"not":[14],"know":[15],"whether":[16,44],"covenants":[17,35,45],"affect":[18],"before":[20],"they":[21],"are":[22,51],"violated.":[23],"In":[24],"this":[25],"study,":[26],"use":[28],"an":[29,102],"exogenous":[30],"accounting-based":[31],"shock":[32],"to":[33,53,75,107,115,123,142,146],"debt":[34,68,80,120],"that":[36,50,64,72],"relaxed":[37],"tightness":[39],"(SFAS":[40],"160)":[41],"and":[42],"examine":[43],"constrain":[46],"for":[48],"borrowers":[49],"close":[52,74,114],"violation,":[54,116],"even":[55],"when":[56],"the":[57,88,118,133,136],"borrower":[58],"is":[59,140],"financially":[60,84],"healthy.":[61],"We":[62,99],"find":[63,101],"SFAS":[65,110,128],"160":[66,111,129],"increased":[67],"levels":[69],"firms":[71,113],"were":[73],"violation.":[76],"This":[77],"increase":[78,103],"was":[81,121,130],"driven":[82],"by":[83,97],"healthy":[85],"firms,":[86],"suggesting":[87,117],"likelihood":[89],"of":[90,135],"future":[91],"violations":[93],"could":[94],"impede":[95],"borrowing":[96],"firms.":[98],"also":[100],"investment":[105],"sensitivity":[106],"Q":[108],"additional":[119],"used":[122],"make":[124],"legitimate":[125],"investments.":[126],"Because":[127],"passed":[131],"midst":[134],"financial":[137,149],"crisis,":[138],"it":[139],"difficult":[141],"generalize":[143],"our":[144],"findings":[145],"more":[147],"normal":[148],"periods.":[150],"JEL":[151],"Classifications:":[152],"G01;":[153],"G30;":[154],"G31;":[155],"G33;":[156],"M21;":[157],"M41.":[158]},"counts_by_year":[{"year":2026,"cited_by_count":2},{"year":2025,"cited_by_count":4},{"year":2023,"cited_by_count":3},{"year":2022,"cited_by_count":3},{"year":2021,"cited_by_count":5},{"year":2020,"cited_by_count":3},{"year":2019,"cited_by_count":1}],"updated_date":"2026-10-16T09:59:22.235173","created_date":"2018-06-21T00:00:00"}
