IDEAS home Printed from https://ideas.repec.org/a/ids/intjaf/v3y2011i1p49-71.html
   My bibliography  Save this article

Why reduce profit? Accounting choice of impairments in Swedish listed corporations

Author

Listed:
  • Pernilla Broberg
  • Sven-Olof Yrjo Collin
  • Torbjorn Tagesson
  • Monika Axelsson
  • Charlotta Schele

Abstract

Positive accounting theory and institutional theory are used in conjunction in order to explain accounting choice. The theory is applied on IAS 36 (impairment of assets), and tested on a sample of listed Swedish corporations. We find that the choice is mainly induced by agency and general business factors and to a slighter degree by institutional factors. Especially, we find that institutional influence will be stronger when it is in the interest of important stakeholders; that impairments can be used as a mean of signalling trust to absent owners and that the institutional element of tradition cannot be tested separately from the agency element of opportunism.

Suggested Citation

  • Pernilla Broberg & Sven-Olof Yrjo Collin & Torbjorn Tagesson & Monika Axelsson & Charlotta Schele, 2011. "Why reduce profit? Accounting choice of impairments in Swedish listed corporations," International Journal of Accounting and Finance, Inderscience Enterprises Ltd, vol. 3(1), pages 49-71.
    • Handle: RePEc:ids:intjaf:v:3:y:2011:i:1:p:49-71
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=42220
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Torbjörn Tagesson & Sven-Olof Yrjö Collin, 2016. "Corporate governance influencing compliance with the Swedish Code of Corporate Governance," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 13(3), pages 262-277, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:intjaf:v:3:y:2011:i:1:p:49-71. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=231 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.