Financial Reporting in 1920: The Case of Industrial Companies

Authors

Jeffrey Archambault, Marshall UniversityFollow
Marie E. Archambault, Marshall UniversityFollow

Document Type

Article

Publication Date

2010

Abstract

This study uses the 1920 Moody’s Analysis of Industrial Investments to assess the extent of financial reporting by U.S. indus­trial companies. The reporting of an income statement and a balance sheet, as well as the amount of disclosure in both of these statements, is examined empirically to determine which economic factors influ­ence this reporting. The results show that corporate-governance, op­erating, and financing factors all significantly influence the reporting of financial statements and the extent of disclosure within those state­ments. However, the significant factors vary across the two financial statements and the two decisions considered (reporting a particular statement and the amount of disclosure within the statement to re­port). All factors are shown to influence significantly the decision to report both a balance sheet and an income statement and the amount of information to report in a balance sheet. The decision regarding the amount of information to report in an income statement is only influenced by corporate-governance and operating factors.

Comments

The version of record is available from the publisher at http://130.74.92.141/cdm/ref/collection/aah/id/26183. Copyright © 2010 Academy of Accounting Historians. Printed with permission. All rights reserved.

Recommended Citation

Archambault, J. J., & Archambault, M. (2010). Financial reporting in 1920: The case of industrial companies. The Accounting Historians Journal, 37(1). 53-90.