Quotation Garrod, Neil, Kosi, Urska, Valentincic, Aljosa. 2008. Asset write-offs in the absence of agency problems. Journal of Business Finance & Accounting 35 (3-4): S. 307-330.




Using a large sample of small private companies, we show incremental influence of economic incentives over prescriptions from accounting standards by financial statement preparers in a code-law setting with high alignment between financial and tax reporting and no agency problems. Contrary to predictions from standards, more profitable companies are more likely to write-off and the write-off magnitude is greater, reflecting tax minimisation. Larger companies are more likely to write-off, but the magnitude decreases with size, reflecting increasing political costs due to greater visibility to tax authorities. Previous write-off patterns and magnitudes are persistent, reflecting institutional learning linked to regulatory changes.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of Business Finance and Accounting
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, STRAT-B, VW-D, WH-B
Language English
Title Asset write-offs in the absence of agency problems
Volume 35
Number 3-4
Year 2008
Page from 307
Page to 330
URL http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1122933
DOI 10.1111/j.1468-5957.2008.02078.x


Kosi, Urska (Former researcher)
Garrod, Neil
Valentincic, Aljosa
International Accounting Group AB (Details)
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