Efficient Contracting and the Choice of Accounting Method in the Oil and Gas Industry

34 Pages Posted: 19 Sep 2014

Date Written: January 1, 1990

Abstract

This paper's results are consistent with the choice of accounting method in the oil and gas industry being dominated by measurable characteristics of firms and guided by the principles of efficient contracting. The results are inconsistent with an alternative hypothesis, opportunistic behavior by managers. The efficient contracting explanation is also consistent with the empirical findings from earlier studies; [e.g., Lilien and Pastena (1982) and Deakin 1979)].

Keywords: Accounting Choice, Efficient Contracting, Full Cost, Successful Efforts

JEL Classification: G3

Suggested Citation

Malmquist, David, Efficient Contracting and the Choice of Accounting Method in the Oil and Gas Industry (January 1, 1990). Journal of Accounting & Economics (JAE), Vol. 12, 1990. Available at SSRN: https://ssrn.com/abstract=2498141

David Malmquist (Contact Author)

Citigroup, Inc. ( email )

3800 Citi Group Center
Tampa, FL 33610
United States

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