Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7341303 | Advances in Accounting | 2009 | 12 Pages |
Abstract
Results indicate that by reporting operating leases, firms avoided on average $582Â million of liabilities (11% of total liabilities) and $450Â million of assets (4% of total assets) for our 366 sample firms. Partitioning sample into negative and positive income impact subgroups provides additional insight into firm's motivation for using operating leases. Under lease capitalization the top quartile positive subgroup experienced an 18% increase in income while the top quartile negative subgroup had an 11% decline in income. There was also a significant negative impact on liquidity, leverage and performance ratios.
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Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Joanne C. Duke, Su-Jane Hsieh, Yuli Su,