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This is a Observational study (also classified as: Literature Review).

Capital Structure Effects Associated with the New Lease Accounting Standard

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Observational analysis shows reduced reliance on debt in firms adopting ASC 842, suggesting significant contracting costs.

Firms adopting ASC 842 reduced existing debt by an average of 7%–10%, indicating major financial shifts.
The most significant debt reductions were seen in firms heavily capitalizing operating leases due to ASC 842.
Firms with flexible debt contracts reported the largest decreases, as did those at risk of violating covenants.
These findings highlight the crucial role of contracting costs in influencing capital structure adjustments.

Ferreira et al. (2025) studied this question.

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