A Theory on Voluntary Income Increasing Accounting Changes
Author: Peter Cheng
Publisher:
Published: 1987
Total Pages: 23
ISBN-13:
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Author: Peter Cheng
Publisher:
Published: 1987
Total Pages: 23
ISBN-13:
DOWNLOAD EBOOKAuthor: Daniel Coulombe
Publisher:
Published: 1987
Total Pages: 210
ISBN-13:
DOWNLOAD EBOOKAuthor: Daniel Coulombe
Publisher:
Published: 1987
Total Pages: 210
ISBN-13:
DOWNLOAD EBOOKAuthor: Daniel Coulombe
Publisher:
Published: 1987
Total Pages: 34
ISBN-13:
DOWNLOAD EBOOKAuthor: Cheng, Peter
Publisher: Québec : Direction de la recherche, Faculté des sciences de l'administration, Université Laval
Published: 1992
Total Pages: 17
ISBN-13:
DOWNLOAD EBOOKAuthor: Anne Beatty
Publisher:
Published: 2002
Total Pages:
ISBN-13:
DOWNLOAD EBOOKThis study examines whether the provisions of a firm's bank debt contracts affect its accounting choices. Starting with a sample of firms who have bank debt and who also voluntarily changed accounting methods, we investigate whether the likelihood that the change increased (rather than decreased) the borrowers income depends on (1) whether the changes in accounting methods affect the bank debt contract calculations, (2) the expected costs of violating the bank debt covenants, (3) whether performance pricing provisions affect the interest rate on the loan, and (4) whether the bank debt contract contains accounting-based dividend restrictions. After controlling for other motives for changing accounting methods, we find that borrowers whose bank debt contracts allow accounting method changes to affect contact calculations are more likely to make income-increasing rather than income-decreasing changes. This increase in likelihood of an income-increasing change is attenuated when expected costs of technical violation are lower because there is a single lender, and occurs for borrowers whose debt contacts have performance pricing and dividend restrictions. These results suggest that incentives to lower interest rates through performance pricing or to retain dividend payment flexibility influence borrowers' accounting method choices, thereby addressing the fundamental questions posed by Fields et al. (2001) of whether, under what circumstances, and how accounting choice matters.
Author:
Publisher: Psychology Press
Published: 1994
Total Pages: 660
ISBN-13: 9780415111478
DOWNLOAD EBOOKThis bibliography lists the most important works published in economics in 1993. Renowned for its international coverage and rigorous selection procedures, the IBSS provides researchers and librarians with the most comprehensive and scholarly bibliographic service available in the social sciences. The IBSS is compiled by the British Library of Political and Economic Science at the London School of Economics, one of the world's leading social science institutions. Published annually, the IBSS is available in four subject areas: anthropology, economics, political science and sociology.
Author: Jan Pieter Krahmen (editor)
Publisher:
Published: 2004
Total Pages: 550
ISBN-13: 0199253161
DOWNLOAD EBOOKWritten by a team of scholars, predominantly from the Centre for Financial Studies in Frankfurt, this volume provides a descriptive survey of the present state of the German financial system and a new analytical framework to explain its workings.
Author:
Publisher:
Published: 1992
Total Pages: 672
ISBN-13:
DOWNLOAD EBOOKAuthor: Jaewoo Kim
Publisher:
Published: 2015
Total Pages: 59
ISBN-13:
DOWNLOAD EBOOKBeginning in 2010 a number of firms voluntarily adopted mark-to-market (MTM) accounting for the actuarial gains and losses associated with their pension plans. That change required them to begin immediately reporting such gains or losses in their income statements and was in marked contrast to their previous policy which smoothed such gains or losses into income over time. A novel aspect of the change is that adopting firms gave up a reporting alternative with a built-in smoothing mechanism in exchange for one (MTM) that was expected to increase earnings volatility due to the unpredictable effect of (future) uncontrollable market factors on the firms' future MTM adjustments. The paper tests two non-mutually exclusive explanations for firms' adoption of MTM, an “increase transparency” explanation and a “managerial opportunism” explanation. Our results paint a nuanced picture of how the costs and benefits of different accounting policies vary across firms and reveal that both explanations are useful in explaining cross-sectional variation in the MTM adoption decisions. We further document that firms' MTM accounting choices are interconnected with their voluntary disclosures of non-GAAP earnings.