Empirical research on accounting choice

Thomas D. Fields, Thomas Z. Lys*, Linda Vincent

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

760 Scopus citations


We review research from the 1990s that examines the determinants and consequences of accounting choice, structuring our analysis around the three types of market imperfections that influence managers' choices: agency costs, information asymmetries, and externalities affecting non-contracting parties. We conclude that research in the 1990s made limited progress in expanding our understanding of accounting choice because of limitations in research design and a focus on replication rather than extension of current knowledge. We discuss opportunities for future research, recommending the exploration of the economic implications of accounting choice by addressing the three different reasons why accounting matters.

Original languageEnglish (US)
Pages (from-to)255-307
Number of pages53
JournalJournal of Accounting and Economics
Issue number1-3
StatePublished - Sep 2001


  • Accounting choice
  • Accounting judgments and estimates
  • Capital markets
  • Earnings manipulation
  • Voluntary disclosure

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


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