The effect of owner versus management control on the choice of accounting method

This project examines the relationship between the ownership control status of firms and the accounting methods they adopt. The arguments of Watts and Zimmerman's positive theory are integrated with those of managerial economists to generate the prediction that management-controlled firms are m...

Full description

Saved in:
Bibliographic Details
Main Authors: Sia, Lay Yee, Loh, Sze Ling, Yeo, Siew Peng
Other Authors: Tan Mui Siang, Patricia
Format: Final Year Project
Language:English
Published: 2014
Subjects:
Online Access:http://hdl.handle.net/10356/59779
Tags: Add Tag
No Tags, Be the first to tag this record!
Institution: Nanyang Technological University
Language: English
id sg-ntu-dr.10356-59779
record_format dspace
spelling sg-ntu-dr.10356-597792023-05-19T05:41:39Z The effect of owner versus management control on the choice of accounting method Sia, Lay Yee Loh, Sze Ling Yeo, Siew Peng Tan Mui Siang, Patricia Nanyang Business School DRNTU::Business::Accounting This project examines the relationship between the ownership control status of firms and the accounting methods they adopt. The arguments of Watts and Zimmerman's positive theory are integrated with those of managerial economists to generate the prediction that management-controlled firms are more likely than owner-controlled firms to adopt accounting methods which increase reported earnings. The alternative view is the Fama thesis that the managerial labour market acts as sufficient disciplining mechanism, such that there are no differences in the accounting procedures used in different ownership structures. The project compares the useful life of depreciable assets used by a sample of management- and owner-controlled firms for financial reporting purposes. The comparison considers and controls for the factors of firm size and leverage. The comparison reveals that there is no significant difference in the useful life of depreciable assets adopted by management-controlled and owner-controlled firms. ACCOUNTANCY 2014-05-14T05:52:09Z 2014-05-14T05:52:09Z 1995 1995 Final Year Project (FYP) http://hdl.handle.net/10356/59779 en Nanyang Technological University 92 p. application/pdf
institution Nanyang Technological University
building NTU Library
continent Asia
country Singapore
Singapore
content_provider NTU Library
collection DR-NTU
language English
topic DRNTU::Business::Accounting
spellingShingle DRNTU::Business::Accounting
Sia, Lay Yee
Loh, Sze Ling
Yeo, Siew Peng
The effect of owner versus management control on the choice of accounting method
description This project examines the relationship between the ownership control status of firms and the accounting methods they adopt. The arguments of Watts and Zimmerman's positive theory are integrated with those of managerial economists to generate the prediction that management-controlled firms are more likely than owner-controlled firms to adopt accounting methods which increase reported earnings. The alternative view is the Fama thesis that the managerial labour market acts as sufficient disciplining mechanism, such that there are no differences in the accounting procedures used in different ownership structures. The project compares the useful life of depreciable assets used by a sample of management- and owner-controlled firms for financial reporting purposes. The comparison considers and controls for the factors of firm size and leverage. The comparison reveals that there is no significant difference in the useful life of depreciable assets adopted by management-controlled and owner-controlled firms.
author2 Tan Mui Siang, Patricia
author_facet Tan Mui Siang, Patricia
Sia, Lay Yee
Loh, Sze Ling
Yeo, Siew Peng
format Final Year Project
author Sia, Lay Yee
Loh, Sze Ling
Yeo, Siew Peng
author_sort Sia, Lay Yee
title The effect of owner versus management control on the choice of accounting method
title_short The effect of owner versus management control on the choice of accounting method
title_full The effect of owner versus management control on the choice of accounting method
title_fullStr The effect of owner versus management control on the choice of accounting method
title_full_unstemmed The effect of owner versus management control on the choice of accounting method
title_sort effect of owner versus management control on the choice of accounting method
publishDate 2014
url http://hdl.handle.net/10356/59779
_version_ 1770565918214062080