The economic determinants of reporting policies of Greek frims : The influence of tax considerations
Part of : Αρχείον οικονομικής ιστορίας ; Vol.XIII, No.1, 2001, pages 7-26
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7-26
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Empirical research have indicated that when firm’s management makes accountingpolicy decisions, it may have to trade-off the tax benefits relating with a particular decision against the non-tax costs ensuing from it. The applicability of these arguments is examined within the context of the Greek business sector. In particular, this paper investigates whether Greek firms’ ownership/control status, and their leverage characteristics, influences the balance of the non-tax costs and the tax benefits. Furthermore, the influence of the size of the firm on its accounting-policy decisions is investigated. In addition, it has been examined whether the firms’ accounting-policy decisions constitute a part of a tax-reducing strategy aiming to reduce firm’s long time taxable income by substituting alternative tax shields across time. The findings of this analysis suggest that firms’ characteristics can explain certain aspects of Greek firms’ accounting-policy decisions. An empirical investigation will certainly shed some light on these issues.
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