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A glimpse of positive accounting theory (PAT)

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  • Santoso, Muhammad Rifky
  • Sebayang, Minda Muliana br

Abstract

Positive accounting theory (PAT) has been more developed than normative accounting theory in this era. The development of PAT research has discussed about what factors influenced management to report earnings. By using literature reviews, there are many researches in discussing the external factors to influence management to report earnings, such as bonuses, the debt equity ratio, political costs, and good governance. The other researches have discussed the association between earnings and stock prices. There are still few discussions about the selfmotivation of the directors or managers why choose a certain accounting method. The difference of environment, types of industry, and timing of financial statement reporting can be a further research. By using theories introduced by Popper, Kuhn, and Lakatos, PAT has elements in these three theories; however, PAT has not been categorized as science.

Suggested Citation

  • Santoso, Muhammad Rifky & Sebayang, Minda Muliana br, 2017. "A glimpse of positive accounting theory (PAT)," MPRA Paper 83665, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:83665
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    References listed on IDEAS

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    1. K.V. Peasnell & P.F. Pope & S. Young, 2005. "Board Monitoring and Earnings Management: Do Outside Directors Influence Abnormal Accruals?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 32(7‐8), pages 1311-1346, September.
    2. K.V. Peasnell & P.F. Pope & S. Young, 2005. "Board Monitoring and Earnings Management: Do Outside Directors Influence Abnormal Accruals?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 32(7-8), pages 1311-1346.
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    More about this item

    Keywords

    Earning; normative; bonus; management;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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