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Does Accounting Comparability Affect Corporate Employment Decision-Making?
The British Accounting Review, Volume: 52, Issue: 6, Start page: 100937
Swansea University Author:
Mohamed Elmagrhi
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DOI (Published version): 10.1016/j.bar.2020.100937
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...
| Published in: | The British Accounting Review |
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| ISSN: | 0890-8389 |
| Published: |
Elsevier BV
2020
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| Online Access: |
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| URI: | https://cronfa.swan.ac.uk/Record/cronfa54699 |
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| 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. |
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| Keywords: |
accounting comparability; labour investment efficiency; employment decisions; corporate governance |
| College: |
Faculty of Humanities and Social Sciences |
| Issue: |
6 |
| Start Page: |
100937 |