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...

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...

We examine several explanations drawn from prior academic research and current popular press anecdotes for the unprecedented level of underpricing in Internet IPOs. Our sample consists of 342 Internet firms that went public between 1988 and 1999 and a matched sample of 249 non-Internet IPOs. The...

Three explanations are commonly offered for the unprecedented levels of underpricing in recent IPOs by Internet firms: (1) media hype drives underpricing; (2) Internet firms leave money on the table to be able to follow up underpriced IPOs with follow on financing offers; and (3) underpricing is...