Examination of Share Price Behavior During the 1973-1976 Lessee Accounting Standard-Setting Process
Examination of Share Price Behavior During the 1973-1976 Lessee Accounting Standard-Setting Process
Thompson, Robert B.
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The costs required to achieve a formal amendment of the agreement are also, presumably, small. On the other hand, amendment of a "public" loan agreement typically requires the consent of the holders of two thirds of the outstanding bonds — an expensive undertaking if the bond are widely held. CHAPTER 4 SAMPLE SELECTION AND PRELIMINARY TESTS OF EVENT-RELATED ABNORMAL PERFORMANCE 4. 1 Introduction The discussion of Chapters 2 and 3 raises questions which can be investigated empirically on two dis...tinct levels. First, did the various lease-related accounting standards of the 1973-1976 period have an adverse impact on lessee share prices? And second, if an adverse impact did indeed result, is the cross-sectional distribution of that impact consistent with that which would be expected under the "contracting hypothesis" as it applies to loan contracts? These questions will be explored using a two-stage research design. In the general parlance of capital market studies, the first stage will be devoted to an assessment of the "event-related abnormal performance" of lessee firms.
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