The Silent Majority: Private U.S. Firms and Financial Reporting Choices

Autor:	Petro Lisowsky, Michael Minnis
Rok vydání:	2020
Předmět:	Finance Economics and Econometrics 050208 finance business.industry media_common.quotation_subject 05 social sciences 050201 accounting Audit External debt Capital allocation line Trade credit Accounting Debt 0502 economics and business Internal debt Asset (economics) business Explanatory power media_common
Zdroj:	Journal of Accounting Research. 58:547-588
ISSN:	1475-679X 0021-8456
Popis:	This study uses a comprehensive panel of tax returns to examine the financial reporting choices of medium‐to‐large private U.S. firms, a setting that controls over $9 trillion in capital, vastly outnumbers public U.S. firms across all industries, yet has no financial reporting mandates. We find that nearly two‐thirds of these firms do not produce audited GAAP financial statements. Guided by an agency theory framework, we find that size, ownership dispersion, external debt, and trade credit are positively associated with the choice to produce audited GAAP financial statements, while asset tangibility, age, and internal debt are generally negatively related to this choice. Our findings reveal that (1) equity capital and trade credit exhibit significant explanatory power, suggesting that the primary focus in the literature on debt is too narrow; (2) firm youth, growth, and RD and (3) many firms violate standard explanations for financial reporting choices and substantial unexplained heterogeneity in financial reporting remains. We conclude by identifying opportunities for future research.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::c18d3f67bf671a4f0f6057a1ae8f04a7 https://doi.org/10.1111/1475-679x.12306 Zobrazit plný text záznamu Plný text ve formátu PDF Plný text ve formátu HTML
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