Accounting Theory and Practice最新文献

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Credit rating agencies’ assessments of related party transactions

Accounting Theory and Practice

Pub Date : 2025-01-01 DOI: 10.1016/j.accoth.2024.100005

Sonakshi Agrawal , Hariom Manchiraju , Sumeet Rajput

This study examines the impact of Related Party Transactions (RPTs) on credit risk assessments by credit rating agencies (CRAs). Using a comprehensive dataset and a fixed effects regression model, we find that CRAs differentiate between financing and operating RPTs, generally assigning lower credit ratings to firms with financing RPTs while awarding higher ratings to those with operating RPTs. Further analysis reveals that CRAs distinguish between equity and debt-related financing RPTs, with firms engaging in debt-related RPTs receiving lower ratings, likely due to the potential risk that these transactions create by facilitating cash tunneling and strategic defaults. Conversely, equity-related RPTs do not significantly impact ratings. Additionally, CRAs assess RPTs within group-affiliated firms and material RPTs of firm with superior governance structures favorably. CRAs favorably view material RPTs by group firms in financial distress suggesting these RPTs reduce default risk. Overall, this study demonstrates that CRAs integrate RPT information into credit risk assessments and thus contributes to the understanding of CRA rating processes and the role of RPTs in credit risk assessments.

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引用次数: 0

Reflections on my service as the Chief Economist of the US securities and exchange commission and implications for India

Accounting Theory and Practice

Pub Date : 2024-01-01 DOI: 10.1016/j.accoth.2024.100002

S.P. Kothari

This manuscript offers an insider's perspective on the role of the Chief Economist and the Division of Economic and Risk Analysis (DERA) at the US Securities and Exchange Commission (SEC) during the author's tenure from March 2019 to January 2021. It begins with a brief history of the SEC, highlighting its mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. The manuscript elaborates on the SEC's organizational structure, detailing the functions of its rulemaking divisions, enforcement division, and compliance division, with a special focus on DERA.

引用次数: 0

Rethinking innovation policy in India: Amplifying spillovers through contracting-out

Accounting Theory and Practice

Pub Date : 2024-01-01 DOI: 10.1016/j.accoth.2024.100004

R.A. Mashelkar , Ajay Shah , Susan Thomas

At independence, India committed itself fully to foster, promote and sustain the creation of science and scientific research in all aspects. In this paper, we present first principles reasoning on the case for state action, and the optimal mechanisms for using taxpayer resources, to fulfil this commitment. We argue in favour of a reorientation of public spending on innovation: away from building vertical government organizations, and in favour of a contracting-out strategy. Such a strategy would induce knowledge and capabilities in the society, and through this, induce greater gains for the people of India. We present a preliminary sketch of the path to implementation.

引用次数: 0

Principles of corporate governance and practices in India-an Appraisal 印度的公司治理原则和实践--评析

Accounting Theory and Practice

Pub Date : 2024-01-01 DOI: 10.1016/j.accoth.2024.100001

U.K. Sinha

引用次数: 0

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