HILTON, ANDREW S.; O'BRIEN, PATRICIA C. - In: Journal of Accounting Research 47 (2009) 1, pp. 179-211
<heading id="h1" level="1" implicit="yes" format="display">ABSTRACT</heading>We examine management discretion to decide when and how much to write down an asset, in a unique case where a tracking stock provides an observable market value for the asset. We find that, despite market evidence that Inco Ltd.'s financial statements substantially overvalued the...