Debt Financing and Accounting Conservatism in Private Firms


  • Accepted by Sudipta Basu. We would like to thank Sudipta Basu, two anonymous referees, Bok Baik, Feng Chen, John Core, Lee-Seok Hwang, Bingbing Hu, Sun Young Kim, Anthony Ng, Chul W. Park, Jong Chool Park, Donghui Wu, and the seminar participants at Hong Kong Baptist University, University of Hong Kong, the 2010 American Accounting Association Annual Meeting, the 2010 Journal of Contemporary Accounting and Economics Symposium, and the 2009 Annual Conference of the World Accounting Frontiers Series for their comments on earlier versions of this paper. Woo-Jong Lee acknowledges the financial support of the Hong Kong Polytechnic University (project code: A-PD1W).