On the Persistent Understatement of Shareholder's Equity Around Europe

Autor:	Araceli Mora Enguídanos, Juan Manuel García Lara
Rok vydání:	2003
Předmět:	Economics and Econometrics business.industry Equity (finance) Cost accounting Accounting Monetary economics Shareholder Balance sheet Scale effects Business Spurious relationship Understatement Market value Finance
Zdroj:	Spanish Journal of Finance and Accounting / Revista Española de Financiación y Contabilidad. 32:44-68
ISSN:	2332-0753 0210-2412
DOI:	10.1080/02102412.2003.10779475
Popis:	We examine the existence of balance sheet conservative practices by listed companies in seven European countries, analysing the differences among them. Our results show that in every country under study there are conservative practices that lead to a persistent understatement of operating assets with respect to market value. This understatement could be mainly attributable to the usage of historic cost accounting as well as to the non-recognition of certain intangible assets. We also find that in code-law based countries balance sheet conservative practices are much more pronounced. Additionally, we analyse whether our results are influenced by a different sample composition, and if spurious scale effects can drive them.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::4b26c5999fb825a96cf17433892a4780 https://doi.org/10.1080/02102412.2003.10779475 Zobrazit plný text záznamu