Robert Libby and Nicholas Seybert
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780199546350
- eISBN:
- 9780191720048
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199546350.003.0013
- Subject:
- Business and Management, Organization Studies, Finance, Accounting, and Banking
This chapter reviews recent behavioural studies of the effects of regulation on earnings management and accounting choice. It examines the impact of financial reporting, auditing, and other corporate ...
More
This chapter reviews recent behavioural studies of the effects of regulation on earnings management and accounting choice. It examines the impact of financial reporting, auditing, and other corporate governance regulations on the beliefs and choices of managers, auditors, and corporate directors. Behavioural studies contribute to the broader literature by shedding light on potential unintended consequences and overall efficacy of proposed regulations, revealing the roles of specific actors and the motives behind reporting choices, and demonstrating what determines managers' preferences for different earnings management methods (both real and accruals based). The chapter also discuss areas that have received less attention that provide promising avenues for future behavioural research involving regulation, earnings management, and accounting choice.Less
This chapter reviews recent behavioural studies of the effects of regulation on earnings management and accounting choice. It examines the impact of financial reporting, auditing, and other corporate governance regulations on the beliefs and choices of managers, auditors, and corporate directors. Behavioural studies contribute to the broader literature by shedding light on potential unintended consequences and overall efficacy of proposed regulations, revealing the roles of specific actors and the motives behind reporting choices, and demonstrating what determines managers' preferences for different earnings management methods (both real and accruals based). The chapter also discuss areas that have received less attention that provide promising avenues for future behavioural research involving regulation, earnings management, and accounting choice.
Alfred Wagenhofer
- Published in print:
- 2004
- Published Online:
- January 2005
- ISBN:
- 9780199260621
- eISBN:
- 9780191601668
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199260621.003.0001
- Subject:
- Economics and Finance, Financial Economics
The objective is to discuss the merits of analytical models in financial accounting research. Analytical models are particularly useful for gaining insights into situations that are characterized by ...
More
The objective is to discuss the merits of analytical models in financial accounting research. Analytical models are particularly useful for gaining insights into situations that are characterized by strategic interactions of various decision-makers with information asymmetry and conflicting interests. Describes the common model structures used in this kind of research, typical assumptions, and major results of the models. Provides examples including aggregations, conservatism, earnings management, and auditing as a basis for an evaluation of the costs and benefits of analytical research. A major advantage is the ability to derive results that run counter to common wisdom, thus enhancing our understanding of real phenomena as well as identifying the conditions under which certain results hold or do not hold. Finally, it considers robustness issues and empirical testing of analytical results, and policy recommendations based on them.Less
The objective is to discuss the merits of analytical models in financial accounting research. Analytical models are particularly useful for gaining insights into situations that are characterized by strategic interactions of various decision-makers with information asymmetry and conflicting interests. Describes the common model structures used in this kind of research, typical assumptions, and major results of the models. Provides examples including aggregations, conservatism, earnings management, and auditing as a basis for an evaluation of the costs and benefits of analytical research. A major advantage is the ability to derive results that run counter to common wisdom, thus enhancing our understanding of real phenomena as well as identifying the conditions under which certain results hold or do not hold. Finally, it considers robustness issues and empirical testing of analytical results, and policy recommendations based on them.
David Hatherly, David Leung, and Donald MacKenzie
- Published in print:
- 2008
- Published Online:
- August 2013
- ISBN:
- 9780262162524
- eISBN:
- 9780262281607
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262162524.003.0005
- Subject:
- Society and Culture, Technology and Society
This chapter presents the philosophical roots of finitism, financial reporting in finitist perspective, accounting for economic reality, and rule-governed accounting. Finitism helps people in ...
More
This chapter presents the philosophical roots of finitism, financial reporting in finitist perspective, accounting for economic reality, and rule-governed accounting. Finitism helps people in classifying activities, items, and states of all kinds, whereas financial statements include an income statement, a statement of financial position, and a cash flow statement. According to the authors, corporate financial reporting is a major gap in sociological understandings of contemporary economic processes. Financial reporting directly affects the economic health of corporations and economic reality has been considered as an important part of it. The authors have also explained accruals-based current financial reporting, the valuation of a company’s assets, and several approaches for the detection of earnings management.Less
This chapter presents the philosophical roots of finitism, financial reporting in finitist perspective, accounting for economic reality, and rule-governed accounting. Finitism helps people in classifying activities, items, and states of all kinds, whereas financial statements include an income statement, a statement of financial position, and a cash flow statement. According to the authors, corporate financial reporting is a major gap in sociological understandings of contemporary economic processes. Financial reporting directly affects the economic health of corporations and economic reality has been considered as an important part of it. The authors have also explained accruals-based current financial reporting, the valuation of a company’s assets, and several approaches for the detection of earnings management.
