Journal of Accounting and Economics Vol. 12 No. 1-3 1990
Incentives for unconsolidated financial reporting
Abstract
We provide a positive analysis of a firm's decision to report the operations of a financial subsidiary on a consolidated versus an unconsolidated basis. Our evidence indicates that the firm is more likely to choose consolidated reporting the greater the operating, financial, and informational interdependencies between parent and subsidiary. Moreover, our evidence offers no support for the FASB hypothesis that firms use unconsolidated financial subsidíaries to understate the fixed claims on their balance sheets.
- DOI
- 10.1016/0165-4101(90)90045-6
- Volume
- 12
- Issue
- 1-3
- Pages
- 141-171
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref