Functional Fixation

ISBN-13: 9783659168529 / Angielski / Miękka / 2012 / 100 str.

Anirban Ghatak

Opis

Functional fixation is the view that individual investor interpret accounting information without regard for the rules used to arrive at the information. It says that investors can be misled by firms accounting methods and choices. Given that the investors perceived preoccupation with short term EPS as an indicator of company performance, it seems highly probable that the effect on the EPS will be a key consideration in the debt-equity choice, i.e. there is a functional fixation on short term EPS.The primary focus of this study is to address the question of the extent to which financing decisions can be explained on the basis of behavior conditioned by financial reporting practices - in particular to those relating to the calculation of the earning per share. Thus, the key point at the issue is whether or not the debt-equity choice appears to be a function of financial reporting practice.

O autorze

Dr. Anirban Ghatak, MBA, M.Phil, PhD, has over 10 years of experience in teaching MBA and PG programs. At present, he is the Assistant Professor - Finance, Institute of Management, Christ University. He has his credit more than 10 publication in the referred journals and also he presented more than 15 papers in the International seminars.