Brown,Izan and Loh (1992)found that revaluations are more likely to take place:
A) In small firms with low value assets that wished to borrow more.
B) In industries that are strike prone.
C) In entities that are highly geared.
D) In industries that are strike prone and in entities that are highly geared.
E) None of the given answers.

Question

Quizplus · Accepted Answer

Brown, Izan, and Loh (1992) found that revaluations were more likely to take place in industries that are strike-prone and in entities that are highly geared. This suggests that companies may choose to revalue their assets in order to improve their financial position and potentially increase their borrowing capacity in industries that are prone to labor strikes, as well as in highly leveraged firms.

Brown,Izan and Loh (1992)found That Revaluations Are More Likely to Take