Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 5, 2022 erstellt
Beschreibung:
This study examines the relevance of risk factor disclosures (RFDs) for private debt contracting. We hypothesize and find that the information contained in risk disclosures is positively associated with the extent to which debt contract terms are stringent regarding the pricing, collateral, and covenant provisions. Further analyses suggest that this disclosure effect operates through risk-relevant information and is stronger for lenders with lower pre-deal information endowment, for disclosures that are more topically focused, and for borrowers more exposed to external risks. Lastly, we find a feedback effect of debt issuance that increases the information content of subsequent RFDs. Our findings provide support to the SEC’s amendments of Regulation S-K in 2019 that were designed to enhance the information relevance of RFDs