Accounting choice

Chapter
Part of the Springer Series in Accounting Scholarship book series (KLAS, volume 5)

Abstract

Accounting is an information system design problem. An objective in the study of accounting is to understand its nature and its utility for helping organizations manage uncertainty and private information. As one of many information sources, accounting has many peculiar properties: it’s relatively late, it’s relatively coarse, it’s typically aggregated, it selectively recognizes and reports information (or, equivalently, selectively omits information), however accounting is also highly structured and well disciplined against random errors, and frequently audited. Like other information sources accounting competes for resources. The initial features cited above may suggest that accounting is at a competitive disadvantage. However, the latter features (integrity) are often argued to provide accounting its comparative strength and its integrity is reinforced by the initial features (see Demski [1994, 2008] and Christensen and Demski [2003]).

Keywords

Nash Equilibrium Asset Price Private Information Earning Management Econometric Analysis 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  1. 1.The Ohio State UniversityColumbusUSA

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