The supply of and demand for accounting information
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. Copyright (c) 2007 The AuthorsJournal compilation (c) 2007 The European Bank for Reconstruction and Development .
Year of publication: |
2007
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Authors: | Goncharov, Igor ; Zimmermann, Jochen |
Published in: |
The Economics of Transition. - European Bank for Reconstruction and Development (EBRD). - Vol. 15.2007, 2, p. 257-283
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Publisher: |
European Bank for Reconstruction and Development (EBRD) |
Saved in:
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