Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
TY - JOUR
T1 - The supply of and demand for accounting information
T2 - the case of bank financing in Russia
AU - Goncharov, Igor
AU - Zimmermann, Jochen
PY - 2007/4
Y1 - 2007/4
N2 - The article analyzes the use of accounting information in Russia. We assess reporting behaviour in the lending process for a sample of Russian companies in the years 1999-2004 and postulate that Russian companies manage their earnings in order to avoid showing losses when applying for bank financing. Once a credit has been granted, companies are predicted to manage earnings because of the bank's monitoring activities. By means of univariate and multivariate analysis we are able to attribute the discontinuity around a zero target in the earnings distribution with firms' response to the banks' assessment of accounting performance. This implies that financing considerations affect the reporting incentives of Russian companies.
AB - The article analyzes the use of accounting information in Russia. We assess reporting behaviour in the lending process for a sample of Russian companies in the years 1999-2004 and postulate that Russian companies manage their earnings in order to avoid showing losses when applying for bank financing. Once a credit has been granted, companies are predicted to manage earnings because of the bank's monitoring activities. By means of univariate and multivariate analysis we are able to attribute the discontinuity around a zero target in the earnings distribution with firms' response to the banks' assessment of accounting performance. This implies that financing considerations affect the reporting incentives of Russian companies.
KW - earnings management
KW - reporting incentives
KW - bank financing
KW - transition economies
KW - EARNINGS MANAGEMENT
KW - QUALITY
KW - MODELS
KW - FIRMS
U2 - 10.1111/j.1468-0351.2007.00289.x
DO - 10.1111/j.1468-0351.2007.00289.x
M3 - Journal article
VL - 15
SP - 257
EP - 283
JO - Economics of Transition
JF - Economics of Transition
SN - 0967-0750
IS - 2
ER -