Accounting for interest by real estate developers

Zimmer I. (1986) Accounting for interest by real estate developers. Journal of Accounting and Economics, 8 1: 37-51. doi:10.1016/0165-4101(86)90009-1

Author Zimmer I.
Title Accounting for interest by real estate developers
Journal name Journal of Accounting and Economics   Check publisher's open access policy
ISSN 0165-4101
Publication date 1986
Sub-type Article (original research)
DOI 10.1016/0165-4101(86)90009-1
Volume 8
Issue 1
Start page 37
End page 51
Total pages 15
Subject 1402 Applied Economics
2002 Cultural Studies
2003 Language Studies
Abstract This paper investigates accounting for interest by Australian real estate developers. It argues that management's choice of accounting technique is the result of ex ante contracting to prevent management opportunistic behavior, rather than a manifestation of opportunistic behavior per se. The argument provides a richer description of accounting choice and explains why, in Australia, leverage and the accounting method choice are correlated in the absence of bond covenants. The argument also explains why, inconsistent with political cost arguments, larger firms are more likely to capitalize than expense interest.
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Unknown

Document type: Journal Article
Sub-type: Article (original research)
Collection: Scopus Import
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Citation counts: Scopus Citation Count Cited 32 times in Scopus Article | Citations
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Created: Sat, 09 Jul 2016, 06:52:13 EST by System User