EconPapers    
Economics at your fingertips  
 

Does accounting comparability affect corporate employment decision-making?

Zhuang Zhang, Collins Ntim (), Qingjing Zhang and Mohamed H. Elmagrhi

The British Accounting Review, 2020, vol. 52, issue 6

Abstract: This paper investigates whether accounting comparability affects corporate employment decision-making. We find that firms with greater accounting comparability experience a lower degree of inefficiency in labour investments. Further, our results show that accounting comparability affects labour investments via improved external monitoring and internal governance mechanisms. Additional analyses indicate that our findings are not driven by non-labour investments and are robust to alternative explanations and endogeneity concerns. Collectively, the results are consistent with the view that comparability is an effective monitoring tool, which mitigates agency conflict and thereby reduces opportunistic employment decision-making.

Keywords: Accounting comparability; Labour investment efficiency; Employment decisions; Corporate governance (search for similar items in EconPapers)
JEL-codes: G31 G38 M41 M51 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0890838920300573
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:bracre:v:52:y:2020:i:6:s0890838920300573

DOI: 10.1016/j.bar.2020.100937

Access Statistics for this article

The British Accounting Review is currently edited by Nathan Lael Joseph and Alan Lowe

More articles in The British Accounting Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2022-05-25
Handle: RePEc:eee:bracre:v:52:y:2020:i:6:s0890838920300573