This study examines how the Great Kanto Earthquake of 1923 influenced corporate accounting practices, focusing on changes in depreciation policies brought about by 39 Japanese manufacturers across machinery, electrical equipment, and transportation equipment industries. Analysing data from 1921 to 1926, it reveals that many firms reduced depreciation rates or ceased depreciation disclosures to maintain profit margins and meet shareholder demands for dividends, while some, particularly in the electrical equipment sector, increased depreciation rates to reinvest in electrification through national urbanization. These findings illustrate the role of managerial discretion and regulatory gaps in shaping financial reporting during crises, offering insights into accounting history and corporate resilience to external shocks.
