Raising capital through bond issuance plays a more and more important role in the financing of companies. In the article authors have analysed which variables determine the number of covenants proposed by bonds issuers and how those... more
Raising capital through bond issuance plays a more and more important role in the financing of companies. In the article authors have analysed which variables determine the number of covenants proposed by bonds issuers and how those variables affect the final number of covenants placed in emission. The research shows that time passage has the strongest and the most relevant impact on covenants, providing standardization of issue parameters, growth of risk awareness, market knowledge among investors and experience of issuers.
Motivated by continued interest in the fairness and reliability of financial disclosures, we study the use of impression management in the letters to shareholders of stock-exchange listed companies written in the Polish language. The... more
Motivated by continued interest in the fairness and reliability of financial disclosures, we study the use of impression management in the letters to shareholders of stock-exchange listed companies written in the Polish language. The letters are a succinct form of narrative communication, easily accessible to professionals and individual investors alike, which makes them an important element of the market information environment. While the letters can be used to signal key information regarding the issuing company, they can also be used to obfuscate and bias the information contained in financial statements. We study the letters of Polish companies from 2008 and 2013 to determine how impression management develops over time and to find out what patterns exist in the use of impression management. We find that agency theory explanations dominate, but there is a significant increase in the use of impression management between the years studied.
