We experimentally explore how common knowledge provided by accounting systems affects investors' decision and shapes the formation of security prices over time. We design alternative accounting structures and run experiments in artificial security markets framed by these structures. In sessions...

In listed companies, the Board of directors has ultimate responsibility for information disclosure. The conventional wisdom is that director independence is an essential factor in improving the quality of that disclosure. In a sense, this approach subordinates expertise to independence. We argue...

When capital markets are assumed to be (informationally) efficient and the firm a mere collection of marketable resources, corporate governance and accounting are expected to be primarily concerned with making corporate insiders sensitive to external pressure: financial reporting and the board...

In listed companies, the Board of directors has ultimate responsibility for information disclosure. The conventional wisdom is that director independence is an essential factor in improving the quality of that disclosure. In a sense, this approach subordinates expertise to independence. We argue...

This paper develops a theoretical analysis of performance measurement systems (including related accounting standards) and the composition of the Board in the context of business models driven by complementarities, innovation and intangibles. Performance management systems frame and shape the...

Why delve into accounting to understand the economic nature of the firm? A Coase's recent suggestion calls economic organization and accounting system at issue for understanding how the special economics of the firm supersedes price system in creating and allocating resources. But incomplete...

lsquo;Why discuss accounting in Socio-Economic Review?' lsquo;Because accounting constructs socio-economic reality.' lsquo;How?!' lsquo;Theoretically speaking, there should be many ways of doing ldquo;account-ingrdquo; - an act of explaining business realities to multiple stakeholders of...

The collected book enhances current economic understanding of the firm as an institution and an organization, looking beyond the narrow boundaries of neoclassical economics to an interdisciplinary approach integrating accounting with law and economics. It represents the first synthesis of the...

In 2006, the China Accounting Standards Committee (CASC) issued its Statement No. 20, which permits both the purchase and pooling of interests (or merger) method of accounting for business combinations. The decision of the CASC in Statement No. 20 stands in contrast to the decisions taken by the...

Fair value refers to current values as the backbones of accounting measurements. Current value follows the efficient financial market (EFM) hypothesis - which abstracts away from economic realization - as guidance for the financial market investment process through ignorance and hazard. This...