The recent ruling by the Financial Accounting Standards Board to expense employee stock options has re-ignited a decade long debate that has divided the new Congress. Within accounting circles, there is debate whether to expense options, treat them as liabilities, or to not consider them at all...

This study investigates the influence of past volatility on individual investors' forecasting behavior. We conducted two experiments in which we used real stock prices to construct low and high volatility time series, and asked participants to make both point estimates and interval forecasts of...

This study investigates the quality of direct probability judgments and quantile estimates with a focus on calibration and consistency. The two response modes use different measures of miscalibration so it is difficult to compare directly their relative (in)accuracy. We employed a more refined...

We provide experimental evidence that relaxing margin restrictions to allow more short-selling can exacerbate overpricing, even though it reduces equilibrium price levels. This is because smart-money traders initially profit more by front-running optimistic investor sentiment than by...

The article introduces a new model of multiple-entity accounting system that evolved from triple-entry bookkeeping idea developed by Ijiri Y., the contract model of the firm proposed by Sunder S., and studies of money theory by Dobija M. The multiple-entity accounting model, by contrast to the...

Enterprise risk management (ERM) has recently emerged as a widespread practice in financial institutions. It has been increasingly codified and encrypted into regulatory, corporate governance and organisational management blueprints. A burgeoning literature of regulatory and practitioner texts...

This paper investigates how firms react strategically to investor sentiment via their disclosure policies in an attempt to influence the sentiment-induced biases in expectations. Proxying for sentiment using the Michigan Consumer Confidence Index, we show that during low-sentiment periods,...