<![CDATA[This study examines when firms can be considered truly comparable by systematically reviewing the literature on firm heterogeneity, peer selection, industry classification, and accounting information quality. Using a qualitative systematic literature review, the study synthesizes prior theoretical and empirical evidence to identify recurring relationships and methodological challenges in measuring firm comparability. The findings indicate that industry membership alone is insufficient to establish meaningful comparability because firms within the same industry may differ substantially in business models, economic characteristics, product markets, and financial structures. Peer selection therefore represents a critical mechanism linking firm heterogeneity to comparability and the quality of accounting information. The review further finds that comparability is purpose-dependent and can be better assessed by combining industry classification with firm-specific, investor-based, product-market, and financial-statement similarity measures. Overall, true comparability exists when firm similarities are sufficiently aligned with the economic dimension and analytical purpose of the comparison.]]>
Copyrights © 2025
