No Cover Image

Journal article 101 views

Does Accounting Comparability Affect Corporate Employment Decision-Making? / Zhuang Zhang; Collins G. Ntim; Qingjing Zhang; Mohamed Elmagrhi

The British Accounting Review, Volume: 52, Issue: 6, Start page: 100937

Swansea University Author: Mohamed, Elmagrhi

  • Accepted Manuscript under embargo until: 6th August 2022

Abstract

This paper investigates whether accounting comparability affects corporate employment decision-making. We find that firms with greater accounting comparability experience a lower degree of inefficiency in labour investments. Further, our results show that accounting comparability affects labour inve...

Full description

Published in: The British Accounting Review
ISSN: 0890-8389
Published: Elsevier BV 2020
Online Access: Check full text

URI: https://cronfa.swan.ac.uk/Record/cronfa54699
Tags: Add Tag
No Tags, Be the first to tag this record!
Abstract: This paper investigates whether accounting comparability affects corporate employment decision-making. We find that firms with greater accounting comparability experience a lower degree of inefficiency in labour investments. Further, our results show that accounting comparability affects labour investments via improved external monitoring and internal governance mechanisms. Additional analyses indicate that our findings are not driven by non-labour investments and are robust to alternative explanations and endogeneity concerns. Collectively, the results are consistent with the view that comparability is an effective monitoring tool, which mitigates agency conflict and thereby reduces opportunistic employment decision-making.
Keywords: accounting comparability; labour investment efficiency; employment decisions; corporate governance
College: School of Management
Issue: 6
Start Page: 100937