Quotation Pierk, Jochen, Weil, Matthias. 2016. Price Regulation and Accounting Choice. Journal of Accounting and Public Policy 35 (3), 256-275.


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Abstract

This paper empirically investigates the interplay of price regulation on the product market and accounting choices. Specifically, we analyze the impact of regulated prices in the German utility sector on the decision to adopt a new accounting regulation one year in advance of the otherwise mandated adoption. This article finds that regulated firms are more likely than non-regulated firms to adopt the new accounting regulation early, thereby achieving higher regulated revenues. Manually analyzing financial statements, we are able to estimate the increase in firm-specific allowed revenues for the regulation period of 2013–2017. This article contributes to the literature by shedding light on the link of industry-specific product market regulation and managers’ accounting choices.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of Accounting and Public Policy
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, INF-A, STRAT-B, WH-B
Language English
Title Price Regulation and Accounting Choice
Volume 35
Number 3
Year 2016
Page from 256
Page to 275
Reviewed? Y
DOI http://dx.doi.org/10.1016/j.jaccpubpol.2015.12.005

Associations

People
Pierk, Jochen (Former researcher)
External
Weil, Matthias (Humboldt-Universit├Ąt zu Berlin, Germany)
Organization
International Accounting Group AB (Details)
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