Renee J. Vida

Publication Date

1-1-1991

Document Type

Dissertation/Thesis

Degree Name

B.S. (Bachelor of Science)

Legacy Department

Department of Accountancy

Abstract

As an investor, you have an opportunity to invest in a second-tier Japanese firm. Routinely, you analyze the price/earnings ratio and discover that it is dramatically higher than that of an otherwise comparable United States company. Superficially, you surmise that the investment opportunity in the Japanese firm must be advantageous. However, with deeper investigation, questions regarding Japan's economic and accounting policies shed doubt on the investment. For example, is the price/earnings ratio higher because the cost of funds in Japan is lower? Is it because real prices charged to Japanese customers are higher than those charged to non-Japanese customers in overseas markets which result in higher profit margins? Or is it due to an accounting distortion, and, if so, which of the two markets -- U.S., Japan or both -- has the distortion? ...

Comments

Includes bibliographical references.

Extent

24 pages

Language

eng

Publisher

Northern Illinois University

Rights Statement

In Copyright

Rights Statement 2

NIU theses are protected by copyright. They may be viewed from Huskie Commons for any purpose, but reproduction or distribution in any format is prohibited without the written permission of the authors.

Alt Title

The IASC : accounting in international proportions

Media Type

Text

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