Pricing of off-balance sheet debt : How do bond market participants use the footnote disclosures on operating leases and postretirement benefit plans?
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 787-808 |
| Journal / Publication | Accounting and Finance |
| Volume | 51 |
| Issue number | 3 |
| Publication status | Published - Sept 2011 |
Link(s)
Abstract
In this study, we examine whether the public debt market prices information on off-balance sheet debt arising from operating leases and postretirement plans. We find that bond-rating agencies price off-balance sheet debt arising from operating leases and the coefficient on off-balance sheet debt measure of operating leases is similar to that of capital leases on the balance sheet. Regarding postretirement benefit plans, we find that bond-rating agencies do price postretirement benefit obligations that are reported in balance sheet but do not price such obligations disclosed in footnotes. We find similar results when we examine corporate bond yields on new debt issues. © 2010 The Authors. Accounting and Finance © 2010 AFAANZ.
Research Area(s)
- Bond rating, Bond yield, Off-balance sheet financing, Operating leases, Postretirement benefits
Citation Format(s)
Pricing of off-balance sheet debt: How do bond market participants use the footnote disclosures on operating leases and postretirement benefit plans? / Sengupta, Partha; Wang, Zheng.
In: Accounting and Finance, Vol. 51, No. 3, 09.2011, p. 787-808.
In: Accounting and Finance, Vol. 51, No. 3, 09.2011, p. 787-808.
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
