This study synthesizes and extends the prior literature examining economic motives for manager's accounting method choices. First, we present a framework for organizing the economic factors that potentially influence managers' accounting decisions. We apply our framework to examine inventory and...

This study adds to the literature that attempts to explain firms' accounting method choices by expanding the traditional set of independent variables to include those derived from implicit claims between the firm and its customers suppliers employees and short-term creditors. On large samples of...