The U.S. Securities and Exchange Commission (“SEC”) Regulation S-K requires supplier firms to disclose information on their major customers in the segment reports of 10-K filings. Given the increasing importance of environmental, social, and governance (“ESG”) for supplier-customer...

We examine whether the U.S. partisan gap over the COVID-19 pandemic finds its way into corporate decisions in terms of how firms communicate the impact of the pandemic to investors. Specifically, we examine whether executives’ political leanings affect their firms’ qualitative disclosures...

Do firms provide informative disclosures in an environment of extreme uncertainty? We study this research question by examining corporate disclosures during the initial stage of the COVID-19 pandemic, i.e., the first quarter of 2020. During this period, firms had to respond to an unprecedented...

This paper investigates the relation between debt valuation adjustments (DVAs) and top executive compensation in the banking industry. DVAs arise from changes in fair value of liabilities associated with changes in a firm’s own credit standing, and have become a significant income component...

We examine whether financial statement note disclosures play an enhanced role in value relevance when managers lose the ability to convey information via financial statement placement discretion. Specifically, we consider the setting of ASU 2011-05, which removed the option for firms to report...

We provide empirical evidence that managers smooth earnings using discretionary R&D spending (i.e., real smoothing) when managerial compensation packages contain high risk-taking incentives. Specifically, we find that real smoothing is related to both the sensitivity of executive wealth to a...

Under SFAS No. 159, U.S. firms have the option to measure debt liabilities at fair value, which results in recognition of unrealized gains and losses from debt valuation adjustments (DVA) when a firm's own credit risk changes. Critics have raised concerns about the counterintuitive income...