The Supply of and Demand for Accounting Information: The Case of Bank Financing in Russia

27 Pages Posted: 3 Apr 2007

See all articles by Igor Goncharov

Igor Goncharov

Lancaster University - Department of Accounting and Finance

Jochen Zimmermann

University of Bremen - Faculty of Business Studies and Economics; University of Bremen - Chair of Accounting and Control

Abstract

The article analyzes the use of accounting information in Russia. We assess reporting behaviour in the lending process for a sample of Russian companies in the years 1999-2004 and postulate that Russian companies manage their earnings in order to avoid showing losses when applying for bank financing. Once a credit has been granted, companies are predicted to manage earnings because of the bank's monitoring activities. By means of univariate and multivariate analysis we are able to attribute the discontinuity around a zero target in the earnings distribution with firms' response to the banks' assessment of accounting performance. This implies that financing considerations affect the reporting incentives of Russian companies.

Suggested Citation

Goncharov, Igor and Zimmermann, Jochen, The Supply of and Demand for Accounting Information: The Case of Bank Financing in Russia. Economics of Transition, Vol. 15, No. 2, pp. 257-283, April 2007. Available at SSRN: https://ssrn.com/abstract=976788 or http://dx.doi.org/10.1111/j.1468-0351.2007.00289.x

Igor Goncharov (Contact Author)

Lancaster University - Department of Accounting and Finance ( email )

The Management School
Lancaster LA1 4YX
United Kingdom

Jochen Zimmermann

University of Bremen - Faculty of Business Studies and Economics ( email )

Hochschulring 4
Germany
+49 421 218 9121 (Phone)

University of Bremen - Chair of Accounting and Control ( email )

Universitaetsallee GW I
Bremen, D-28334
Germany
+49 421 218-9119 (Phone)

HOME PAGE: http://www.controlling.uni-bremen.de

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
17
Abstract Views
539
PlumX Metrics