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Creditor Rights, Conflict of Interest Among Creditors, and Borrowers’ Accounting Conservatism: Evidence From Anti-Recharacterization Laws

Journal of Accounting, Auditing & Finance

Published online on

Abstract

Journal of Accounting, Auditing & Finance, Volume 41, Issue 2, Page 732-758, April 2026.
Using the staggered adoption of anti-recharacterization laws (ARLs) as an exogenous shock to creditor rights, we study the effects of creditor rights on borrowers’ accounting conservatism. By forbidding securitized assets from being recharacterized as ...