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Bond covenants and changes in accounting policy: Canadian evidence *
Author(s) -
LABELLE RÉAL
Publication year - 1990
Publication title -
contemporary accounting research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.769
H-Index - 99
eISSN - 1911-3846
pISSN - 0823-9150
DOI - 10.1111/j.1911-3846.1990.tb00781.x
Subject(s) - covenant , bond , accounting , politics , economics , business , political science , finance , law
. This paper examines accounting change decisions in Canada. Evidence gathered from financial statements suggests that there is a relation between bond covenants and the decision to make an accounting policy change. Except for the effect of regulation, the political visibility hypothesis did not hold.