Please use this identifier to cite or link to this item: http://hdl.handle.net/2445/107803
Title: Ownership Structure and Accounting Method Choice: A Study of European Real Estate Companies
Author: Mäki, Juha
Somoza López, Antonio
Sundgren, Stephan
Keywords: Comptabilitat
Propietat
Europa
Accounting
Property
Europe
Issue Date: 2016
Publisher: Taylor & Francis Online
Abstract: Companies can under IAS 40 Investment Properties choose between the fair value and the cost models. The fair value model arguably results in more relevant information but is also more costly to use. Based on studies suggesting that financial reports are a more important medium for communication with investors if ownership is dispersed, we hypothesize that the use of the fair value model is positively associated with ownership dispersion. We study European Real Estate firms and find support for this prediction. We also find a positive association between trade of shares and ownership dispersion, supporting the view that financial statements are less important if ownership concentration is high. Finally, we examine whether the choice depends on the identity of large owners. Companies with a financial company as the largest owner are somewhat more likely to choose the fair value model. Overall, the results indicate that accounting rules facilitating optional accounting policies have benefits.
Note: Versió postprint del document publicat a: https://doi.org/10.1080/17449480.2016.1154180
It is part of: Accounting in Europe, 2016, vol. 13, num. 1, p. 1-19
Related resource: https://doi.org/10.1080/17449480.2016.1154180
URI: http://hdl.handle.net/2445/107803
ISSN: 1744-9480
Appears in Collections:Articles publicats en revistes (Empresa)

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