Economic Determinants of Multiple Accounting Method Choices in a Swiss Context - Archive ouverte HAL
Article Dans Une Revue Journal of International Financial Management and Accounting Année : 2004

Economic Determinants of Multiple Accounting Method Choices in a Swiss Context

Résumé

This article investigates economic determinants that may affect multiple accounting method choices made by Swiss listed companies. It intends to make a contribution to the accounting choice literature for at least four reasons. This is, to our knowledge, the first study to investigate the economic determinants of Swiss accounting method choices. Second, Swiss firms provide an interesting sample for testing accounting method choices because they can choose from a much wider range of accounting methods than their American counterparts. Third, this study examines the balance sheet effect as well as the income statement effect. Lastly, multiple accounting methods are used instead of individual choices. The empirical results exhibit that income-accelerating accounting method choices is positively associated with the recourse to bank and private loans, the extent of assets specificity and the ownership dilution of the firm and negatively with labour force. Additionally, firms that select leverage-ratios decreasing accounting methods, make higher recourse to debt and especially bank loans to finance their activities and exhibit a higher proportion of specific assets than other corporations. Overall, this result suggests that in a Swiss context, managers may select accounting methods to decrease both debt and political costs as well as to increase their own compensation to some extent.
Fichier non déposé

Dates et versions

hal-02311733 , version 1 (06-12-2019)

Identifiants

  • HAL Id : hal-02311733 , version 1

Citer

Franck Missonier-Piera. Economic Determinants of Multiple Accounting Method Choices in a Swiss Context. Journal of International Financial Management and Accounting, 2004, 15 (2), pp.118-144 P. ⟨hal-02311733⟩

Collections

EMLYON
21 Consultations
0 Téléchargements

Partager

More