EVIDENCE OF THE EFFECT OF ALTERNATIVE CONSOLIDATION ACCOUNTING TECHNIQUES ON THE FINANCIAL DECISIONS OF USERS

Abstract

An issue related to the strategic choice of organizational form for affiliated businesses is how the financial information of the affiliate will be reported. A question arises as to whether alternative methods of reporting influence user decisions. The purpose of this study was to investigate whether alternative consolidation accounting methods affected the financial decisions of users in selected countries. An experiment was conducted with student subjects in Australia, Canada and the U.S. Alternative consolidation techniques and country were the independent variables. Results indicated user responses were affected by the consolidation method. Country effects were also noted.

Citation

Singleton, W.R. (2000), "EVIDENCE OF THE EFFECT OF ALTERNATIVE CONSOLIDATION ACCOUNTING TECHNIQUES ON THE FINANCIAL DECISIONS OF USERS", International Journal of Commerce and Management, Vol. 10 No. 3/4, pp. 1-17. https://doi.org/10.1108/eb047405