Empirical Research on Accounting Choice

Posted: 14 Nov 2001

Multiple version iconThere are 2 versions of this paper

Abstract

We review research from the 1990s that examines the determinants and consequences of accounting choice, structuring our analysis around the three types of market imperfections that influence managers' choices: agency costs, information asymmetries, and externalities affecting noncontracting parties. We conclude that research in the 1990s made limited progress in expanding our understanding of accounting choice because of limitations in research design and a focus on replication rather than extension of current knowledge. We discuss opportunities for future research, recommending the exploration of the economic implications of accounting choice by addressing the three different reasons why accounting matters.

JEL Classification: M41, M43, M44, D82

Suggested Citation

Fields, Thomas D. and Lys, Thomas Z. and Vincent, Linda, Empirical Research on Accounting Choice. Journal of Accounting & Economics, Vol. 31, Nos. 1-3, September 2001. Available at SSRN: https://ssrn.com/abstract=288308

Thomas D. Fields

Northwestern University - Kellogg School of Management ( email )

2001 Sheridan Road
Evanston, IL 60208
United States

Thomas Z. Lys (Contact Author)

Northwestern University - Kellogg School of Management ( email )

2001 Sheridan Road
Department of Accounting & Information Systems
Evanston, IL 60208
United States
847-491-2673 (Phone)
847-467-1202 (Fax)

Linda Vincent

Northwestern University ( email )

2001 Sheridan Road
Accounting & Information Systems
Evanston, IL 60208
United States
847-491-2659 (Phone)

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