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The Effects of Labour on Accounting Choice in Canada
Author(s) -
CULLINAN CHARLES P.,
BLINE DENNIS M.
Publication year - 2003
Publication title -
canadian accounting perspectives
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.238
H-Index - 17
eISSN - 1911-3838
pISSN - 1499-8653
DOI - 10.1506/j0yc-861k-yv60-m5va
Subject(s) - incentive , depreciation (economics) , collar , labour economics , economics , demographic economics , business , finance , microeconomics , profit (economics) , capital formation , financial capital
This study examines the effects of labour considerations on accounting choice in Canada. Two potential labour‐related incentives are considered: ability to pay and employee attraction and retention. Measures of these incentives are developed based on Canadian data: unionization for ability‐to‐pay incentives, and labour intensity and the percentage of white‐collar employees for the attract and retain incentives. Our results indicate that ability‐to‐pay incentives, measured by unionization, are not associated with depreciation policies in Canada. In contrast, the findings provide mixed support for the attract‐and‐retain perspective, because labour intensity was significantly correlated with these choices, while the percentage of white‐collar employees was marginally significant.