Optimal accounting policies under financial constraints: aggressive versus conservative

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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Year of publication:	2011
Authors:	Akita, Masatomo ; Osaki, Yusuke
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 31.2011, 4, p. 3179-3191
Publisher:	AccessEcon
Subject:	accounting policy \| financial constraints

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Extent:	application/pdf
Type of publication:	Article
Classification:	M4 - Accounting and Auditing ; D8 - Information and Uncertainty
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011278711