Empirical research on accounting choice

Empirical research on accounting choice We review research from the 1990s that examines the determinants and consequences of accounting choice, structuring our analysis around the three types of market imperfections that influence managers’ choices: agency costs, information asymmetries, and externalities affecting non-contracting parties. We conclude that research in the 1990s made limited progress in expanding our understanding of accounting choice because of limitations in research design and a focus on replication rather than extension of current knowledge. We discuss opportunities for future research, recommending the exploration of the economic implications of accounting choice by addressing the three different reasons why accounting matters. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Accounting and Economics Elsevier

Empirical research on accounting choice

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Publisher
Elsevier
Copyright
Copyright © 2001 Elsevier Ltd
ISSN
0165-4101
D.O.I.
10.1016/S0165-4101(01)00028-3
Publisher site
See Article on Publisher Site

Abstract

We review research from the 1990s that examines the determinants and consequences of accounting choice, structuring our analysis around the three types of market imperfections that influence managers’ choices: agency costs, information asymmetries, and externalities affecting non-contracting parties. We conclude that research in the 1990s made limited progress in expanding our understanding of accounting choice because of limitations in research design and a focus on replication rather than extension of current knowledge. We discuss opportunities for future research, recommending the exploration of the economic implications of accounting choice by addressing the three different reasons why accounting matters.

Journal

Journal of Accounting and EconomicsElsevier

Published: Sep 1, 2001

References

  • Reinsurance and the management of regulatory ratios and taxes in the property-casualty insurance industry
    Adiel, R
  • Mandated accounting changes and managerial discretion
    Balsam, S; Haw, I.-M; Lilien, S.B
  • Discretionary behavior with respect to allowances for loan losses and the behavior of security prices
    Beaver, W.H; Engel, E.E
  • An empirical examination of the relation between debt contracts and management incentives
    Begley, J; Feltham, G
  • Disclosure level and the cost of equity capital
    Botosan, C.A
  • Stakeholders implicit claims and accounting method choice
    Bowen, R.M; DuCharme, L; Shores, D
  • Detecting earnings management
    Dechow, P; Sloan, R; Sweeney, A
  • Smoothing income in anticipation of future earnings
    DeFond, M.L; Park, C.W
  • Earnings management by acquiring firms in stock for stock mergers
    Erickson, M; Wang, S.-w
  • Additional evidence on bonus plans and income management
    Gaver, J; Gaver, K; Austin, J
  • Financial reporting, tax costs and book-tax conformity
    Guenther, D.A; Maydew, E.L; Nutter, S.E
  • Earnings-based bonus plans and earnings management by business-unit managers
    Guidry, F; Leone, A.J; Rock, S
  • The economic determinants of accounting choices
    Hand, J.R; Skantz, T.R
  • Annual bonus schemes and the manipulation of earnings
    Holthausen, R; Larcker, D; Sloan, R
  • Managing interacting accounting measures to meet multiple objectives
    Hunt, A; Moyer, S; Shevlin, T
  • Political cost incentives for earnings management in the cable television industry
    Key, K.G
  • The impact of the 1989 change in bank capital standards on loan loss provisions and loan write-offs
    Kim, M.-S; Kross, W
  • Self-serving behavior in managers discretionary information disclosure decisions
    Lewellen, W.G; Park, T; Ro, B.T
  • The impact of taxes on the choice of divestiture method
    Maydew, E; Schipper, K; Vincent, L
  • Deposit insurance and wealth effects
    O’Hara, M; Shaw, W
  • The pricing of discretionary accruals
    Subramanyam, K.R
  • Managerial ownership, accounting choices, and informativeness of earnings
    Warfield, T.D; Wild, J.J; Wild, K.L

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