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Cited by 345

The DOI matches its Crossref record; 111 of the 111 references it cites were found in a registry or an index.

Capital Allocation and Timely Accounting Recognition of Economic Losses

Open access
Bushman, Robert M., Piotroski, Joseph D., Smith, Abbie J.·2011·Journal of Business Finance & Accounting
DOI 10.1111/j.1468-5957.2010.02231.x
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Abstract

Abstract: This paper explores direct relations between corporate investment behavior and the timeliness of accounting recognition of economic losses (TLR) reflected in a country's accounting regime. We explicitly investigate the extent to which TLR influences investment decisions of firm managers. Given the asymmetric emphasis on negative outcomes inherent in TLR, we hypothesize that TLR will most strongly influence investment behavior when managers face deteriorating investment environments. We conjecture that TLR will have an asymmetric impact on investment behavior whereby TLR impacts firms’ investment decisions in the face of declining investment opportunities, but not in the face of increasing in investment opportunities. Using firm‐level investment decisions spanning twenty five countries, we find that investment responses to declining opportunities increases with TLR, while we find no evidence that TLR influences the sensitivity of investment to increasing investment opportunities. Our results are robust to alternative estimates of TLR, alternative estimates of investment responses to changing investment opportunities, and to controls for important country‐level, industry‐level, and firm‐level variables that may impact firms’ investment decisions.

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Metadata

Authors
Bushman, R. M., Piotroski, J. D., & Smith, A. J.
Venue
Journal of Business Finance & Accounting
Publisher
Wiley
Published
2011-01
Volume
38
Issue
1-2
Pages
1-33
ISSN
  • 0306-686X (ISSN-L)
  • 1468-5957
DOI
10.1111/j.1468-5957.2010.02231.x
OpenAlex
W1847892995
Cited by
345
References
111
FWCI
92.67
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: Capital Allocation and Timely Accounting Recognition of Economic Losses. https://app.cochat.ai/papers/10.1111/j.1468-5957.2010.02231.x
The paper
Bushman, R. M., Piotroski, J. D., & Smith, A. J. (2011). Capital Allocation and Timely Accounting Recognition of Economic Losses. Journal of Business Finance & Accounting. https://doi.org/10.1111/j.1468-5957.2010.02231.x

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.