Optimal accounting policies under financial constraints: Aggressive versus conservative

Masatomo Akita; Yusuke Osaki

Optimal accounting policies under financial constraints: Aggressive versus conservative

Masatomo Akita^*, Yusuke Osaki

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

Abstract

We examine how severity of financial constraints influences firms' choices of accounting policies. This paper shows that firms with mild financial constraints choose an aggressive accounting policy and those with severe financial constraints choose a conservative accounting policy.

Original language	English
Pages (from-to)	3179-3191
Number of pages	13
Journal	Economics Bulletin
Volume	31
Issue number	4
Publication status	Published - 2011
Externally published	Yes

ASJC Scopus subject areas

Economics, Econometrics and Finance(all)

Cite this

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title = "Optimal accounting policies under financial constraints: Aggressive versus conservative",

abstract = "We examine how severity of financial constraints influences firms' choices of accounting policies. This paper shows that firms with mild financial constraints choose an aggressive accounting policy and those with severe financial constraints choose a conservative accounting policy.",

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Optimal accounting policies under financial constraints: Aggressive versus conservative

Abstract

ASJC Scopus subject areas

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