Shushu Jiang

Are Foreign Donors Good Monitors?

By Shushu Jiang | June 28, 2021

Economic and accounting literature has long found that foreign investments provide a multitude of benefits to local stock markets and economies. Foreign inflows to for-profit firms are found to harvest not only capital but also managerial and marketing skills in addition to business connections and human resource development. For-profit foreign institutional investors have also been… Read More »

Why Do Lenders Include Cost Savings and Synergy Add-backs in Loan Agreements?

By Shushu Jiang | June 9, 2021

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Accounting is conservative. Under Generally Accepted Accounting Principles (GAAP), a firm should recognize losses before the losses are realized but postpone the recognition of gains until the gains are realized. In other words, the conservative accounting principle promotes timely loss recognition at the expense of timely gain recognition. However, in debt contracting, where lenders and… Read More »