Contagion of accounting methods: evidence from stock option expensing

• 成果类型: Article; Proceedings Paper
• 署名作者: Reppenhagen, David A.
• 署名单位: State University System of Florida; University of Florida
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-010-9128-1
• 发表日期: 2010
• 页码: 629-657
• 关键词: INTERORGANIZATIONAL IMITATION; method choice; diffusion; uncertainty; industry; COMPENSATION; COMPETITION; INTERLOCKS; EVOLUTION; adoption

摘要

I examine how a firm's accounting methods can be influenced by the choices of other firms, which I label contagion. I model accounting method choice as a combination of intrinsic propensities to adopt a method and contagion effects. I predict contagion of accounting methods occurs for two reasons: (1) adoption decisions of other firms are informative for the adoption decision, and (2) prior adoptions change the net benefits of the decision. I test these predictions in the stock option expensing setting where firms had the choice to use the intrinsic or fair value method. Using a firm-level diffusion model, I document evidence consistent with my predictions.