Journal
ACCOUNTING REVIEW
Volume 83, Issue 3, Pages 565-591Publisher
AMER ACCOUNTING ASSOC
DOI: 10.2308/accr.2008.83.3.565
Keywords
disclosure regulation; municipal debt
Categories
Ask authors/readers for more resources
We compare characteristics; of municipal debt issues in states that mandate GAAP for municipalities with issues in states that impose no annual financial disclosure requirements. Cross-sectional comparisons indicate that the use of public (versus private) debt is greater, and municipal debt costs are 14 to 25 basis points lower, in states where GAAP is mandated. Moreover, municipalities in states that impose the GAAP requirement realize lower, debt costs following the effective date of the regulation. These results suggest that GAAP requirements reduce municipal borrowing costs. More generally, the evidence indicates that financial reporting regulation reduces contracting costs between borrowers and lenders.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available