Positive Accounting Theory

Ross L. Watts, Jerold L. Zimmerman, POSITIVE ACCOUNTING THEORY, Prentice-Hall Inc., 1986

Posted: 6 Sep 2006

See all articles by Ross L. Watts

Ross L. Watts

Massachusetts Institute of Technology (MIT) - Sloan School of Management

Jerold L. Zimmerman

University of Rochester - Simon Business School

Abstract

This book reviews the theory and methodology underlying the economics-based empirical literature in accounting. An accounting theory theory is an explanation for observed accounting and auditing practices. Such an explanation is necessary for interpretation of empirical associations between variables. The book discusses the role of theory in empirical work. It then reviews accounting theories involved in empirical studies of the use of accounting in capital markets, contracting and the political process and the extent to which the theories are consistent with those studies' evidence. Empirical studies in auditing are also reviewed. The book finishes with a discussion of the role of accounting research and a summary and evaluation of the research up until the mid-1980s.

Keywords: Accounting theory, capital markets, contracting, political process

JEL Classification: M40, M41, M46, M49, G12, G14, G30, G34

Suggested Citation

Watts, Ross L. and Zimmerman, Jerold L., Positive Accounting Theory. Ross L. Watts, Jerold L. Zimmerman, POSITIVE ACCOUNTING THEORY, Prentice-Hall Inc., 1986, Available at SSRN: https://ssrn.com/abstract=928677

Ross L. Watts (Contact Author)

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

E52-325
Cambridge, MA 02142
United States

Jerold L. Zimmerman

University of Rochester - Simon Business School ( email )

Rochester, NY 14627
United States
585-275-3397 (Phone)
585-442-6323 (Fax)

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