Missonier-Piera, Franck 2004 This article investigates economic determinants that may affect multiple accountingmethod choices made by Swiss listed companies. It intends to make a contribution tothe accounting choice literature for at least four reasons. This is, to our knowledge, thefirst study to investigate the economic determinants of Swiss accounting methodchoices. Second, Swiss firms provide an interesting sample for testing accountingmethod choices because they can choose from a much wider range of accounting methodsthan their American counterparts. Third, this study examines the balance sheet effectas well as the income statement effect. Lastly, multiple accounting methods are usedinstead of individual choices. The empirical results exhibit that income-acceleratingaccounting method choices is positively associated with the recourse to bank and privateloans, the extent of assets specificity and the ownership dilution of the firm and negativelywith labour force. Additionally, firms that select leverage-ratios decreasing accountingmethods, make higher recourse to debt and especially bank loans to finance their activitiesand exhibit a higher proportion of specific assets than other corporations. Overall, thisresult suggests that in a Swiss context, managers may select accounting methods todecrease both debt and political costs as well as to increase their own compensation tosome extent. application/pdf https://folia.unifr.ch/global/documents/320231 https://folia.unifr.ch/documents/320231/files/2004_Missonier-Piera_Economic.pdf eng https://doi.org/10.1111/j.1467-646X.2004.00104.x info:eu-repo/semantics/altIdentifier/doi/10.1111/j.1467-646X.2004.00104.x info:eu-repo/semantics/openAccess License undefined Journal of International Financial Management and Accounting. - 2004, vol. 15, no. 2, p. 118-144 Accounting policy Accounting methods Debt Political costs info:eu-repo/classification/udc/33 Economic Determinants of Multiple Accounting Method Choices in a Swiss Context http://purl.org/coar/resource_type/c_6501