Political cost motivations for directors' revaluations

Hesse, Caroline. (1991). Political cost motivations for directors' revaluations Honours Thesis, School of Business, University of Queensland.

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Author Hesse, Caroline.
Thesis Title Political cost motivations for directors' revaluations
School, Centre or Institute School of Business
Institution University of Queensland
Publication date 1991
Thesis type Honours Thesis
Total pages 102
Language eng
Subjects 14 Economics
Formatted abstract
The objective of this study is to examine the incentives which may drive directors' to revalue their non-current assets. Using a positive accounting theory framework, it is proposed that firms revalue their assets to avoid potential political costs by lowering the reported income of the firm. Whittred and Chan (1991) propose that asset revaluations are unlikely to be motivated by political costs. This proposition is tested in this study by using a various measures of political costs. These measures are size, market concentration, industry labour disputes, effective tax rate and media exposure. All these measures of political costs, except labour disputes, are significantly related to directors' revaluations, indicating that directors' revaluations, at least in part, may be motivated by political cost incentives.

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Created: Wed, 20 Oct 2010, 13:07:30 EST by Ning Jing on behalf of The University of Queensland Library