Does business model affect accounting choices? An empirical analysis of European listed companies

Ugo Lassini, Andrea Lionzo, Francesca Rossignoli

Risultato della ricerca: Contributo in rivistaArticolo in rivistapeer review

4 Citazioni (Scopus)

Abstract

Financial accounting research increasingly includes business model (BM) constructs, but the ability of financial reporting to capture BM characteristics has not been verified. This study empirically explores the links between BMs and accounting choices by clustering a sample of 103 European listed companies according to an innovative, nonlinear algorithm (self-organizing map) that uses pertinent industrial, strategic, governance, and financial variables to uncover different dimensions of a BM. The authors investigate accounting choices (accounting measurement, accounting treatment, and disclosure level) by companies that belong to the different identified BMs. The analysis of the relations between different company BMs and their accounting choices indicates no significant connections, which offers empirical confirmation of the criticisms regarding the inability of financial reporting to represent (or even consider) a company’s BM. The results suggest further attempt to capture BM in financial reporting, which requires regulators to establish accounting standards that acknowledge the value creation processes of an entity and incentivize managers to represent those processes.
Lingua originaleEnglish
pagine (da-a)229-260
Numero di pagine32
RivistaTHE JOURNAL OF MANAGEMENT AND GOVERNANCE
Volume20
DOI
Stato di pubblicazionePubblicato - 2016

Keywords

  • Accounting Choice
  • Business model
  • Financial Accounting

Fingerprint Entra nei temi di ricerca di 'Does business model affect accounting choices? An empirical analysis of European listed companies'. Insieme formano una fingerprint unica.

Cita questo