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Accounting choice in troubled companies

dc.contributor.authorDeAngelo, Harryen_US
dc.contributor.authorDeAngelo, Lindaen_US
dc.contributor.authorSkinner, Douglas J.en_US
dc.date.accessioned2006-04-10T18:26:50Z
dc.date.available2006-04-10T18:26:50Z
dc.date.issued1994-01en_US
dc.identifier.citationDeAngelo, Harry, DeAngelo, Linda, Skinner, Douglas J. (1994/01)."Accounting choice in troubled companies." Journal of Accounting and Economics 17(1-2): 113-143. <http://hdl.handle.net/2027.42/31888>en_US
dc.identifier.urihttp://www.sciencedirect.com/science/article/B6V87-458XNFV-12/2/8dc853b7043a5327c4ca6336cd8b954aen_US
dc.identifier.urihttps://hdl.handle.net/2027.42/31888
dc.description.abstractThis paper studies accounting choice in 76 NYSE firms with persistent losses and dividend reductions (40% forced by binding covenants). We find that managers' accounting choices primarily reflect their firms' financial difficulties, rather than attempts to inflate income. Firms with and without binding covenants exhibit minor accrual differences in the ten years before the dividend reduction. In the dividend reduction and following three years, the full sample exhibits large negative accruals that likely reflect the fact that 87% of sample firms engage in contractual renegotiations -with lenders, unions, government, and/or management-that provide incentives to reduce earnings.en_US
dc.format.extent2168664 bytes
dc.format.extent3118 bytes
dc.format.mimetypeapplication/pdf
dc.format.mimetypetext/plain
dc.language.isoen_US
dc.publisherElsevieren_US
dc.titleAccounting choice in troubled companiesen_US
dc.typeArticleen_US
dc.rights.robotsIndexNoFollowen_US
dc.subject.hlbtoplevelBusinessen_US
dc.description.peerreviewedPeer Revieweden_US
dc.contributor.affiliationumUniversity of Michigan, Ann Arbor, MI 48109-1234, USAen_US
dc.contributor.affiliationotherUniversity of Southern California, Los Angeles, CA 90089-1421, USAen_US
dc.contributor.affiliationotherUniversity of Southern California, Los Angeles, CA 90089-1421, USAen_US
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/31888/1/0000840.pdfen_US
dc.identifier.doihttp://dx.doi.org/10.1016/0165-4101(94)90007-8en_US
dc.identifier.sourceJournal of Accounting and Economicsen_US
dc.owningcollnameInterdisciplinary and Peer-Reviewed


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