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Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/27456
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| Title: | Fundamentals of Accounting Losses |
| Authors: | Klein, April |
| Keywords: | Accounting losses
accounting conservatism
business cycle
macroeconomics
cash flows from operations |
| Issue Date: | Jun-2005 |
| Series/Report no.: | April Klein-7 |
| Abstract: | This paper examines accounting and non-accounting factors behind
accounting losses over a fifty-year period. Using multivariate
time-series analysis, we report evidence that the annual percentage of
losses for U.S. firms is significantly related to accounting
conservatism, Compustat coverage of small firms, real firm performance
as measured by cash flows from operations, and business cycle factors.
We further find that non-accounting factors tend to play the dominant
role in explaining accounting losses over our sample period. Our results
are robust to alternative definitions of macroeconomic productivity, as
well as to varying model specifications. Our findings contribute to the
literature on accounting losses and accounting conservatism and have
implications for the use of accounting loss information in numerous settings. |
| URI: | http://hdl.handle.net/2451/27456 |
| Appears in Collections: | Accounting Working Papers
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