Re-examining the Australian lease decision making research agenda

Neelam Goela, Jayne Bisman

    Research output: Book chapter/Published conference paperConference paperpeer-review

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    This paper examines a number of accounting and financial factors influencing the lease versus borrow and buy decision, particularly with respect to finance leases. The accounting and finance literature reviewed provided a basis for identifying a range of rationales used in lease decision-making in practice. Based on this review, we characterise the lease versus borrow and buy decision as multi-dimensional and multi-factorial. Basic trend analyses of archival, statistical data on leasing in Australia over sixteen financial years (1985-1986 to 2000-2001) was conducted and provided evidence that much of the conventional, theoretical wisdom concerning the factors important in lease versus borrow and buy decisions, particularly those related to accounting precepts and the tax regime, may be misleading. Thus, observed leasing evaluation practices are used as a means to subject the theoretical and empirical literature on leasing decision-making to new scrutiny.We conclude with suggestions for the development of improved lease or purchase decision frameworks and call for further research in the area that will be more capable of handling multi-dimensionality in lease decision-making. Practical application of this knowledge will improve the decisions of lessees, benefit lessors who provide finance and/or operating leases, and direct accounting policy makers.
    Original languageEnglish
    Title of host publicationAFAANZ Conference 2003
    Place of PublicationAustralia
    Number of pages1
    Publication statusPublished - 2003
    EventAccounting and Finance Association of Australia and New Zealand Conference - Brisbane, Queensland, Australia
    Duration: 06 Jul 200308 Jul 2003


    ConferenceAccounting and Finance Association of Australia and New Zealand Conference


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