Detail The LIFO / FIFO Choice as A Signal of Future Costs   Oleh:  Hughes, Patricia J. ; Venezia, Itzhak ; Bar-Yosef, Sasson Jenis: Article from Bulletin/Magazine Dalam koleksi: Journal of Management Accounting Research vol. 7 (1995), page 52-65. Topik: costs; LIFO / FIFO; signal of future costs Ketersediaan Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ36.2 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada     Lihat Detail Induk Isi artikel We provide an additional explanation for the widespread use of FIFO during periods of rising costs with a model in which firms use the proportion of inventory valued by FIFO to signal their low production costs. We show that the more efficient firms with lower rates of change in cost forego fewer tax savings by using FIFO as compared to the LIFO method. We extend previous work by Hughes and Schwartz (1988) through providing a signaling model that is more general in terms of the firms it applies to, yet is also more specific at linking the signal and the source of information asymmetry. The model also relies on the reactive equilibrium concept which has a broader intuitive appeal than the equilibrium concept employed by Hughes and Schwarts. The results of the paper are consistent with the empirical findings of Brown (1980), Ricks (1982), and the more recent results by Hand (1993) and Hughes and Trezevant (1995) that the switch from FIFO to LIFO conveys bad news. The paper also provides the following empirical hypotheses : the production of inventory assigned to LIFO should be increasing in the growth of costs, decreasing in the weight placed on the market inference of the firm's value, increasing in the tax rate, and increasing in the discount rate. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Kembali

Copyright © 2006, 2007 Unika Atma Jaya, all rights reserved