This paper examines the link between managerial overconfidence, conservative accounting and investment. Using Japanese … investment to sales growth volatility. In addition, we examine whether conservative accounting mitigates agency costs and … find that conservative accounting increases investment--cash flow sensitivity. However, our results confirm that …

leases) on corporate investment. We hypothesize that, in order to comply with these standards, managers collect, process, and … disclose additional information, which leads them to reassess their investment decisions. Exploiting the adoption of lease …-level investment. The effect of lease capitalization on investment is more pronounced for firms with a higher reliance on leases and …

investment policy, equity value, and the desirable properties of accrual accounting rules in each setting. Two main questions are …This monograph presents three variants of the neoclassical investment model and characterizes the firm's optimal … considered: (1) What accounting rules result in the most informative financial statements from the perspective of investors …

-biased accounting system performs better than a neutral accounting system, and a more downward bias helps mitigate both investment and …In this paper, we investigate the effect of accounting biases on firms' financing decisions and the role of accounting … financing inefficiency; while for industries with generally high-profit prospects, an upward-biased accounting system is better …

This paper examines the effect of accounting conservatism on firm-level investment during the 2007-2008 global … experienced a sharper decline in investment activity following the onset of the crisis compared to firms with more conservative … debt raising activity and stock performance. The evidence suggests that accounting conservatism reduces underinvestment in …

and support traditional financial techniques. The goal is pursued by considering widespread well-known accounting indexes …, and assuming reversibility rate as time needed to return to the “optimal original state” (as defined in accounting … literature) prior project investment decisions. An illustrative case is proposed to explain how the methodology can be applied …

A fundamental question in accounting is whether and to what extent financial reporting facilitates the allocation of … capital to the right investment projects. Over the last two decades, a large and growing body of literature has contributed to … our understanding of whether and why financial reporting affects investment decision-making. We review the empirical …

corporate internal investment decision process and sheds lights on how accounting quality affects capital budget execution …'s internal investment decision process remains mostly a black box. Using manually collected data, we document significant … discretions over budget execution to improve investment efficiency as well as firm performance. Managers' career concerns …

leases) on corporate investment. We show that the introduction of these rules leads to a decrease in investment, which is … more pronounced for firms with high reliance on leases. We posit and find that lease capitalization affects investment via … opportunities are higher. Regarding the second channel, we argue that lease capitalization affects investment via its effect on …

Prior research shows that financial reporting quality (FRQ) is positively related to investment efficiency for large U … research suggests that FRQ would be less conducive to the mitigation of investment inefficiencies. Earlier studies show that … positively affects investment efficiency. We further find that the relation between FRQ and investment efficiency is increasing …