The Effect of the Firm's Capital Structure on the Choice of Accounting Methods.
研究公司资本结构如何影响管理层对会计标准的选择，发现高杠杆公司更倾向于选择能避免技术违约的会计方法，如油气行业中的完全成本法。
Abstract ABSTRACT: This paper examines the effect of the firm's capital structure on management's preference for alternative accounting standards. It is argued that an accounting standard which causes a reduction in reported earnings or equity and/or increases the volatility of reported earnings may put a firm into technical default on its loan agreements. Accordingly, it is hypothesized that highly leveraged firms would not favor such accounting standards. To test this hypothesis, the financial leverage of a sample of oil and gas producing firms which employ the full cost method of accounting for exploration expenses is compared with that of a sample of similar firms which use the successful efforts method. The results of this test are consistent with the hypothesized effect of the firm's capital structure on management's choice of accounting methods in that more highly leveraged firms tend to select the full cost method.