Aircraft leasing represents a significant portion of the financial statements of airline firms. Accounting treatment of lease transactions is becoming more complicated as firms attempt to achieve off-balance-sheet outcomes vis a vis special purpose entities(SPC). Cross-border leasing involving...

This paper examines the properties of accounting numbers using a real investment framework that predicts asymmetric timeliness of both investment and its outcomes (i.e. sales, earnings and operating cash flows) even in the absence of conservative accounting. In particular, I predict and find...