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dc.contributor.authorSeng, Dynaen_NZ
dc.contributor.authorSu, Jaihuaen_NZ
dc.date.available2011-04-07T03:23:01Z
dc.date.copyright2009en_NZ
dc.identifier.citationSeng, D., & Su, J. (2009). Managerial Incentives Behind Fixed Asset Revaluations: Evidence from New Zealand Firms (Accountancy Working Paper Series). Dyna Seng. Retrieved from http://hdl.handle.net/10523/1606en
dc.identifier.urihttp://hdl.handle.net/10523/1606
dc.description.abstractThis study investigates the underlying management incentives of the upward fixed asset revaluation behaviour of New Zealand listed companies over the period 1999 to 2003. Prior research conducted in Australia (e.g. Whittred and Chan, 1992; Brown et al., 1992) and the U.K. (e.g. Lin and Peasnell, 2000a and 2000b) provided empirical evidence that upward fixed asset revaluation decisions were used to reduce contracting costs, political costs and information asymmetry. This study provides evidence to support the findings of earlier research with regard to the political costs only. That is, larger firms are found to be more likely to revalue their assets in order to mitigate political costs. In addition, this study finds that most revaluation activities of New Zealand companies were conducted regularly by independent valuers. It also finds that some companies choose to disclose current values of fixed assets in notes to their accounts rather than recognising them in their financial statements. It is argued that a perceived benefit of disclosing rather than recognising these current values is a more conservative and, therefore, more credible balance sheet (Cotter, 1999).en_NZ
dc.format.mimetypeapplication/pdf
dc.publisherDyna Sengen_NZ
dc.relation.ispartofseriesAccountancy Working Paper Seriesen_NZ
dc.subjectFixed assets; Revaluation; Leverage; Political costs; Information asymmetry.en_NZ
dc.subject.lcshHF Commerceen_NZ
dc.subject.lcshHF5601 Accountingen_NZ
dc.subject.lcshHF5601 Accountingen_NZ
dc.titleManagerial Incentives Behind Fixed Asset Revaluations: Evidence from New Zealand Firmsen_NZ
dc.typeWorking Paperen_NZ
dc.description.versionUnpublisheden_NZ
otago.bitstream.pages34en_NZ
otago.date.accession2010-04-21 00:53:42en_NZ
otago.schoolAccountancy and Business Lawen_NZ
otago.openaccessOpen
otago.place.publicationDunedin, New Zealanden_NZ
dc.identifier.eprints890en_NZ
otago.school.eprintsAccountancy & Business Lawen_NZ
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