Faculty Digital Archive

Archive@NYU >
Stern School of Business >
Accounting Working Papers >

Please use this identifier to cite or link to this item: http://hdl.handle.net/2451/27456

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

Files in This Item:

File Description SizeFormat
SSRN-id297934.pdf308.93 kBAdobe PDFView/Open

Items in Faculty Digital Archive are protected by copyright, with all rights reserved, unless otherwise indicated.

 

The contents of the FDA may be subject to copyright, be offered under a Creative Commons license, or be in the public domain.
Please check items for rights statements. For information about NYU’s copyright policy, see http://www.nyu.edu/footer/copyright-and-fair-use.html 
Valid XHTML 1.0 | CSS