Abstract: . . .  -3.55 -4.04 -3.35 DEBT - -1.72 -1.73 -1.73 * -16.77 -16.99 -17.01 OPLEASL - -1.75 -1.65 * -11.54 -9.72 GROWTH 0.10 0.10 0.11 0.09 0.10 0.05 0.11 3.76 3.71 4.16 3.55 3.90 2.64 3.95 R 2 0.9023 0.9023 0.9027 0.9021 0.9027 0.9004 0.9027 Observations 11,612 11,612 11,612 11,612 11,612 11,612 11,612 Table 7 Value Relevance of Operating and Capital Lease Liabilities 45 Page 47 * Using a Chi-Square distribution with White-corrected standard errors, the probability that OPLEASL and CAPLEASL are equal is 5.47 percent, the probablity that DEBT and CAPLEASL are equal is 4.81 percent, and the probability that . . .
. . .  -4.04 -3.35 DEBT - -1.72 -1.73 -1.73 * -16.77 -16.99 -17.01 OPLEASL - -1.75 -1.65 * -11.54 -9.72 GROWTH 0.10 0.10 0.11 0.09 0.10 0.05 0.11 3.76 3.71 4.16 3.55 3.90 2.64 3.95 R 2 0.9023 0.9023 0.9027 0.9021 0.9027 0.9004 0.9027 Observations 11,612 11,612 11,612 11,612 11,612 11,612 11,612 Table 7 Value Relevance of Operating and Capital Lease Liabilities 45 Page 47 * Using a Chi-Square distribution with White-corrected standard errors, the probability that OPLEASL and CAPLEASL are equal is 5.47 percent, the probablity that DEBT and CAPLEASL are equal is 4.81 percent, and the probability that DEBT and . . .
. . .  of the firms in the cross- section over the sample period. To the extent these assumptions do not hold, the as-if capitalized operating lease asset is measured with error. To mitigate the effects of measurement error in estimating the as-if capitalized operating lease asset, I focus my study on an examination of operating and capital lease liabilities and include the estimated operating lease asset amount in the adjusted book value of equity variable. 3.2 Empirical Specification Because balance sheet treatment is central to lease accounting, the main tests in this paper employ a model specification . . .
. . .  capital lease obligations (CAPLEASL) plus the as-if capitalized operating lease liability (OPLEASL ) NONCAPLEASL = long-term debt (DEBT) plus the as-if capitalized operating lease liability (OPLEASL) NONOPLEASL = long-term debt (DEBT) plus capital lease obligations (CAPLEASL) Where necessary, I recompute the BVE variable to account for varying levels of disaggregation. 46  . . .
. . .  a negative, significant relation between operating lease activity and the market value of equity consistent with equity investors viewing as-if capitalized operating lease liabilities and capital lease liabilities as true economic liabilities of the firm. Moreover, the results provide evidence that current lease disclosures, as limited as they may be, supply sufficiently relevant and reliable information to be impounded into price by investors. The results also show that equity investors price operating and capital lease liabilities differently. Thus, should the FASB require the capitalization . . .
--3000,5,300,3137,81481