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Determinants Of The Decision To Capitalize Finance Leases By Lessees : Australian Evidence, Salleh B. Hassan
Determinants Of The Decision To Capitalize Finance Leases By Lessees : Australian Evidence, Salleh B. Hassan
Theses: Doctorates and Masters
The objective of this study is to examine the economic factors motivating Australian listed lessee firms to adopt capitalization or footnote disclosure of their finance lease commitments from 1985 to 1987 as permitted by the transitional provision of AAS 17. Six research hypotheses are developed from the economic consequences perspective. It is hypothesised that the decision to capitalize finance lease commitments is positively related to firm’s : (1) corporate structure, (2) size, {3) political visibility, _(4) financial performance, and (5) overseas association, and negatively related to (6) debt contract financial constraints. Support for these hypotheses would be construed as suggesting …