Earticle

초록

영어

Equity method (EM) reporting of off-balance sheet investments offers managers discretion to manipulate earnings and keep the debt of their investments off their own balance sheet. Consistent with these concerns, our results suggest that the use of EM reporting negatively affects the quality of earnings information. The evidence also suggests that managers of U.S. firms take advantage of the discretion provided by the EM to conceal debt. These results are especially relevant when the investment is a joint venture. The analysis shows that financial markets incorporate into prices any expected loss of informativeness derived from the reporting of off-balance investments.

목차

Abstract
 I. Prior literature and hypotheses
  I.A Literature review
  I.B Hypotheses
 II. The extensiveness of the use of off-balance sheet investments and firm characteristics
 III. Effects on uncertainty on future EPS and Leverage of off-balance sheet investments
  III.A The effects of off-balance sheet investments on EPS uncertainty
  III.B The effects of off-balance sheet investments and uncertainty on firm leverage
 III. The effects of the type of EM Investment and of the information provided on the investment
  III.A Relationships between the information provided on the investee and EPS uncertainty.
  III.B Impact of the type of investment on future EPS uncertainty
  III.C Do firms use minority investments to conceal debt?
  III.D Decision to report detailed information in investees
 IV. Valuation effects of EM
  IV.A Event study analysis
  IV.B Relationship between EM accounting and Tobin’s Q
  IV.C Long-run stock performance
 V. Conclusions
 Table
 References

키워드

저자

• Ayca Altintig [ Chapman University ]
• Tomas Mantecon [ University of North Texas ]
• James Conover [ University of North Texas ]
• Kyojik “Roy” Song [ Sungkyunkwan University ]

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  한국재무학회 학술대회

• 간기

  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330