Managing interacting accounting measures to meet multiple objectives: A study of LIFO firms

Managing interacting accounting measures to meet multiple objectives: A study of LIFO firms Using a sample of LIFO users, we examine the strengths and weaknesses of adopting a simultaneous equations approach to study managers' adjustments of interacting accounting measures that meet multiple objectives. We focus on the importance of considering differences in the costs and the effectiveness of adjusting accounting measures. In addition, we examine managers' objectives in subsequent years and how adjustments' reversals affect those objectives. Although generally consistent with earlier studies of LIFO inventory adjustments, our results indicate that modelling interacting accounting measures, such as other current accruals and depreciation, leads to differing conclusions about the role of taxes. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Accounting and Economics Elsevier

Managing interacting accounting measures to meet multiple objectives: A study of LIFO firms

Loading next page...
 
/lp/elsevier/managing-interacting-accounting-measures-to-meet-multiple-objectives-a-r8U1hiCzLN
Publisher site
See Article on Publisher Site

Abstract

Using a sample of LIFO users, we examine the strengths and weaknesses of adopting a simultaneous equations approach to study managers' adjustments of interacting accounting measures that meet multiple objectives. We focus on the importance of considering differences in the costs and the effectiveness of adjusting accounting measures. In addition, we examine managers' objectives in subsequent years and how adjustments' reversals affect those objectives. Although generally consistent with earlier studies of LIFO inventory adjustments, our results indicate that modelling interacting accounting measures, such as other current accruals and depreciation, leads to differing conclusions about the role of taxes.

Journal

Journal of Accounting and EconomicsElsevier

Published: Jun 1, 1996

References

  • Discretionary behavior with respect to the allowance for loan losses and the behavior of security prices
    Beaver, W.H.; Engel, E.E.
  • Stakeholders' implicit claims and accounting method choice
    Bowen, R.M.; DuCharme, L.; Shores, D.
  • Detecting earnings management
    Dechow, P.M.; Sloan, R.G.; Sweeney, A.P.

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off