We use a machine learning technique to assess whether the thematic content of financial statement disclosures (labeled topic) is incrementally informative in predicting intentional misreporting. Using a Bayesian topic modeling algorithm, we determine and empirically quantify the topic content of...

Whistleblowers are ostensibly a valuable resource to regulators investigating securities violations, but whether there is a link between whistleblower involvement and the outcomes of enforcement actions is unclear. Using a dataset of employee whistleblowing allegations obtained from the U.S....

Whistleblowers are ostensibly a valuable resource to regulators investigating securities violations, but whether there is a link between whistleblower involvement and the outcomes of enforcement actions is unclear. Using a data set of employee whistleblowing allegations obtained from the U.S....

We examine whether a shock to the enforceability of Regulation Fair Disclosure (Reg FD) limited its ability to restrict the flow of private information between managers and investors. Prior work provides evidence that Reg FD reduced managers' selective disclosure of material information...

We examine whether a shock to the enforceability of Regulation Fair Disclosure (Reg FD) limited its ability to restrict the flow of private information between managers and investors. Although prior work provides evidence that Reg FD reduced managers’ selective disclosure of material...

The SEC mandates firms to inform investors about their assessment of future contingencies in their 10 Ks. However lengthy and complex disclosures – mostly for dozens of firms in an investor’s portfolio – can barely be processed by a human being. To cope with the flood of information, we...

At the beginning of the 1990s UK accounting standards were described as a ‘laughing stock’. By the millennium they were widely acclaimed and in some respects world-leading. This paper explores some of the key technical advances in this period, and the political processes employed to secure...

We exploit the landmark U.S. Supreme Court decision of Kokesh v. SEC [2017] as a unique identification strategy to investigate the value of securities law enforcement. The Kokesh decision was an unanticipated legal change that limits the SEC's ability to impose disgorgement—its most potent...

This study examines the challenge of implicit communication -- qualitative statements, tone, and non-verbal cues -- to the effectiveness of enforcing corporate disclosure regulation. We use a Regulation Fair Disclosure (Reg FD) setting, given that the SEC adopted the regulation recognizing that...

KPMG's discussion of Bribery and Corruption as a Key Audit Matter (KAM) in the Extended Auditor's Reports (EAR) of Rolls-Royce for 2013-2015 is examined as implying limitations on EARs in general. The KAM for Bribery and Corruption was apparently written in view of the company's legal interests...