MOTIVES FOR ASSET REVALUATION POLICY CHOICE IN CROATIA
The aim of this paper is to research managers’ motives of accounting policy choice for long-term nonfinancial assets. International Financial Reporting Standards (IFRS) allow managers to choose between cost and revaluation model for measurement after recognition. The assumption is that manager’s dec...
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doaj-3c30d09d52fd43e79f14274bd3c5c4942020-11-25T00:19:10ZengCroatian Operational Research SocietyCroatian Operational Research Review1848-02251848-99312011-02-01216070MOTIVES FOR ASSET REVALUATION POLICY CHOICE IN CROATIAŽeljana Aljinović Barać0Slavko Šodan1Faculty of Economics, University of Split, Split, CroatiaFaculty of Economics, University of Split, Split, CroatiaThe aim of this paper is to research managers’ motives of accounting policy choice for long-term nonfinancial assets. International Financial Reporting Standards (IFRS) allow managers to choose between cost and revaluation model for measurement after recognition. The assumption is that manager’s decision is opportunistic so they use the revaluation model as a device to improve perceptive borrowing capacity of a company, and consequently, to reduce debt cost. Prior studies were mainly conducted in developed, marketoriented economies, unlike Croatia. The contribution of this paper is the research of motives and determinants of asset revaluation policy choice in bank-oriented economies with inactive markets. Furthermore, multivariate logistic regression was not used as a research method in this field of accounting in transition and emerging economies till now. Empirical evidence is provided through the sample of Croatian listed companies and the results show that large, profitable companies with low liquidity ratio, low cash flow ratio and increasing debt are more likely to perform upward revaluation.http://hrcak.srce.hr/index.php?show=clanak&id_clanak_jezik=142174revaluation policy choicefair value accountingfinancial leveragefinancial reporting |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Željana Aljinović Barać Slavko Šodan |
spellingShingle |
Željana Aljinović Barać Slavko Šodan MOTIVES FOR ASSET REVALUATION POLICY CHOICE IN CROATIA Croatian Operational Research Review revaluation policy choice fair value accounting financial leverage financial reporting |
author_facet |
Željana Aljinović Barać Slavko Šodan |
author_sort |
Željana Aljinović Barać |
title |
MOTIVES FOR ASSET REVALUATION POLICY CHOICE IN CROATIA |
title_short |
MOTIVES FOR ASSET REVALUATION POLICY CHOICE IN CROATIA |
title_full |
MOTIVES FOR ASSET REVALUATION POLICY CHOICE IN CROATIA |
title_fullStr |
MOTIVES FOR ASSET REVALUATION POLICY CHOICE IN CROATIA |
title_full_unstemmed |
MOTIVES FOR ASSET REVALUATION POLICY CHOICE IN CROATIA |
title_sort |
motives for asset revaluation policy choice in croatia |
publisher |
Croatian Operational Research Society |
series |
Croatian Operational Research Review |
issn |
1848-0225 1848-9931 |
publishDate |
2011-02-01 |
description |
The aim of this paper is to research managers’ motives of accounting policy choice for long-term nonfinancial assets. International Financial Reporting Standards (IFRS) allow managers to choose between cost and revaluation model for measurement after recognition. The assumption is that manager’s decision is opportunistic so they use the revaluation model as a device to improve perceptive borrowing capacity of a company, and consequently, to reduce debt cost. Prior studies were mainly conducted in developed, marketoriented economies, unlike Croatia. The contribution of this paper is the research of motives and determinants of asset revaluation policy choice in bank-oriented economies with inactive markets. Furthermore, multivariate logistic regression was not used as a research method in this field of accounting in transition and emerging economies till now. Empirical evidence is provided through the sample of Croatian listed companies and the results show that large, profitable companies with low liquidity ratio, low cash flow ratio and increasing debt are more likely to perform upward revaluation. |
topic |
revaluation policy choice fair value accounting financial leverage financial reporting |
url |
http://hrcak.srce.hr/index.php?show=clanak&id_clanak_jezik=142174 |
work_keys_str_mv |
AT zeljanaaljinovicbarac motivesforassetrevaluationpolicychoiceincroatia AT slavkosodan motivesforassetrevaluationpolicychoiceincroatia |
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1725372859711225856 |