In this study we conduct a field experiment to examine how qualifying an income-decreasing accounting change in years of strong financial performance affects user assessments of strategic reporting, current financial performance, and financial performance over the next three years (future...

In this study we report the results of an experiment that examines how relatively sophisticated financial statement users interpret management stock option compensation disclosures under SFAS No. 123 and SFAS No. 123R. We predict and find that mandated income statement recognition, as required...

In this study we report the results of an experiment that examines how relatively sophisticated financial statement users interpret management stock option compensation disclosures under SFAS No. 123 and SFAS No. 123R. We predict and find that mandated income statement recognition, as required...

In this study we conduct a field experiment to examine how qualifying an income-decreasing accounting change in years of strong financial performance affects user assessments of strategic reporting, current financial performance, and financial performance over the next three years (future...

This paper documents that previous experience under a performance evaluation system can systematically bias decision makers' subsequent evaluations. In the experiment reported in this paper, subjects made a series of investment decisions under one of four accounting systems, created by crossing...

This study identifies conditions under which the audit risk model does, and does not, describe audit planning (investment and pricing) decisions. In an experiment, audit partners and managers examined one of two cases where a material misstatement ? error or irregularity ? was discovered. The...