Is the more informative accounting method preferred for the consolidation of interests in JCEs?

No theoretical and empirical consensus exists on the appropriate reporting method for interests in Jointly Controlled Entities (JCEs). Alternatives concern equity method and proportionate consolidation. In the frame of a multiple theoretical approach, this study examines whether, using alternatives, managers are more likely to accomplish the information perspective in accounting for JCEs when some determinants occur. We address this gap by exploiting, for the first time, the Italian setting. Results seem to confirm some predictions.