An empirical analysis of the characteristics of firms choosing early adoption of SFAS No. 96 was conducted. Positive accounting theory forms the basis for the analysis. Two analyses are presented. The first analysis compares characteristics of a sample of firms that adopted SFAS 96 with characteristics of a control sample of firms that did not adopt SFAS 96. The second analysis compares characteristics of firms adopting SFAS 96 in the first year possible with characteristics of firms adopting SFAS 96 in later years. The characteristics examined in the first analysis are firm size, leverage, and dividend payout. In addition to the characteristics examined in the first analysis, the second analysis examined two variables representing each firm's return on assets. / The results of the first analysis indicate that, when adoption of SFAS 96 results in an increase in net income, the firms adopting SFAS 96 are smaller and more highly leveraged than the non-adopting firms. There is no significant difference between the two groups for the dividend payout variable. The results of the second analysis indicate that, when adoption of SFAS 96 results in an increase in net income, firm size, leverage, and dividend payout are not determinants in the timing of adoption of SFAS 96. However, the level of return on assets is a determinant in the timing decision. In particular, firms having lower return on assets compared to prior years return on assets are more likely to adopt SFAS 96 in the first year possible. Firms with higher return on assets are more likely to postpone adoption. This finding is consistent with the income smoothing hypothesis, and is not consistent with the bonus maximization hypothesis proposed by Healy (1985). / Source: Dissertation Abstracts International, Volume: 54-02, Section: A, page: 0582. / Major Professor: Thomas Schaefer. / Thesis (Ph.D.)--The Florida State University, 1993.
| Identifer | oai:union.ndltd.org:fsu.edu/oai:fsu.digital.flvc.org:fsu_76843 |
| Contributors | Eakin, Cynthia Firey., Florida State University |
| Source Sets | Florida State University |
| Language | English |
| Detected Language | English |
| Type | Text |
| Format | 127 p. |
| Rights | On campus use only. |
| Relation | Dissertation Abstracts International |
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