http://www.loc.gov/mods/v3 http://www.loc.gov/standards/mods/v3/mods-3-2.xsd
empirical investigation of the effect of ownership control on the choice of accounting methods
The purpose of this study was to determine if there are significant relationships between a firm's ownership structure, its financial characteristics, and its accounting methods. The five dependent variables were inventory, depreciation, and investment tax credit, and two income strategies based on the individual accounting choices. Analytic procedures included univariate and logit regression tests using firms listed in the 1980 "Fortune 500." The results of the univariate tests indicate that firms choosing income-deflating accounting methods differ from those employing income-inflating methods. The income deflators were owner-controlled, had dominant stockholders who served as directors, had second largest stockholder's with less influence, were less heavily leveraged, were larger, and experienced greater financial statement effects. The logit analysis results indicate participation by the largest stockholder in management can affect accounting decisions, as can the presence of a second large stockholder. Both of these issues were factors in the inventory, depreciation, and both strategy decisions. Leverage was consistent in explaining the inventory, investment tax credit, and both strategies choices. Earnings variability was consistently insignificant. Size was significant with the depreciation and both strategy decisions. Financial statement effects were significant in explaining the inventory, investment tax credit, and both strategy choices.
Includes bibliographical references (leaves 86-88).