The Effect of Accounting Standards on Investment Decisions: The Case of SFAS 94

Posted: 15 Jul 1998

See all articles by Heather A. Wier

Heather A. Wier

University of Alberta - Department of Accounting, Operations & Information Systems

Date Written: Undated

Abstract

This paper uses the implementation of SFAS 94 to demonstrate that accounting standards can affect real investment decisions. SFAS 94 requires that firms consolidate nonhomogeneous subsidiaries. Shortly before its implementation, a number of firms with finance subsidiaries disposed of these subsidiaries. I provide evidence consistent with the contention that SFAS 94 influenced the disposal decision.

JEL Classification: G31, M41

Suggested Citation

Wier, Heather A., The Effect of Accounting Standards on Investment Decisions: The Case of SFAS 94 (Undated). Available at SSRN: https://ssrn.com/abstract=2549

Heather A. Wier (Contact Author)

University of Alberta - Department of Accounting, Operations & Information Systems ( email )

Edmonton, Alberta T6G 2R6
Canada
780-492-3053 (Phone)
780-420-3325 (Fax)

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