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This research examines how different accounting methods for leases influence lenders' credit evaluations.

March 18, 2026The Accounting Review

The Effect of Leasing and Different Methods of Accounting for Leases on Credit Evaluations .

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Authors

TWTrevor WilkinsPitney Bowes (France)IZIan ZimmerThe University of Queensland

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Implication

Field experiment investigates how lease accounting methods impact lenders' credit evaluations, indicating that real leverage matters more than accounting methods.

Key Points

This research examines how different accounting methods for leases influence lenders' credit evaluations.
Field experiment conducted with lenders assessing lease accounting methods
Comparison of capitalized leases versus disclosure-only methods
Evaluation of creditors' decisions based on applicants' financial profiles
Lenders' decisions are influenced more by actual leverage levels than by lease accounting methods
No significant impact found from whether the lease is treated as a term loan or financial lease

Cite This Study

Wilkins et al. (1983) studied this question.

synapsesocial.com/papers/69ba42ee4e9516ffd37a3989 https://doi.org/10.2308/tar-4483069

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Implication

Field experiment investigates how lease accounting methods impact lenders' credit evaluations, indicating that real leverage matters more than accounting methods.

The Effect of Leasing and Different Methods of Accounting for Leases on Credit Evaluations .

Discussion

Member takes

Implication

Key Points

Cite This Study

The Effect of Leasing and Different Methods of Accounting for Leases on Credit Evaluations .

Discussion

Member takes

Implication

Key Points

Cite This Study

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