Does accounting reporting complexity distress debt ratings?
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Từ khóa:
Accounting reporting complexity
Debt ratings
Cost of debt;
US firms
Tóm tắt
We examine the influence of accounting reporting complexity at the corporate level on firm debt ratings. Utilizing a dataset comprising non-financial firms in the United States from 2011 to 2017, our findings indicate a statistically significant adverse impact of accounting reporting complexity on debt ratings. This suggests that firms characterized by higher accounting reporting complexity (ARC) levels tend to exhibit lower debt ratings. Additionally, our analysis reveals that the cost of debt serves as a crucial mechanism through which ARC influences debt ratings. Overall, firms are advised to enhance communication with stakeholders, collaborate with credit rating agencies, and maintain vigilance in monitoring and adapting to changes in reporting standards and industry practices, contributing to overall financial stability and investor confidence.
Tài liệu tham khảo
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Cách trích dẫn
Toan, N. M., D. H. Man, và N. T. T. Quang. “Does Accounting Reporting Complexity Distress Debt Ratings?”. Tạp Chí Khoa học Và Công nghệ - Đại học Đà Nẵng, vol 22, số p.h 6B, Tháng Sáu 2024, tr 50-54, doi:10.31130/ud-jst.2024.630E.
