A premise of standard setters and of much empirical research is that improving the quality of accounting standards and … situations in which “better”, i.e., more forward-looking, accounting standards reduce the information content of financial … reports. The reason is that a forward-looking accounting standard affects the smoothness of reported earnings, which can …

This paper examines how the characteristics of accounting systems and management incentives interact and collectively … earnings quality increases in accounting precision. However, we also find counter-intuitive results, such as that an accounting … standard that makes unbiased accounting earnings more informative can reduce earnings quality. These results are mainly driven …

board that decides whether to replace the incumbent manager based on accounting information and the outcome of its … monitoring strategy, which also depends on the accounting information. If accounting is used only for the replacement decision …, conservatism is harmful. However, conservatism is beneficial if accounting is relevant to the monitoring decision because it …

management accounting. Issues are whether a regulation is effective in achieving its objective, how it affects the organizational …

potential remedies actually achieve in equilibrium. For example, accounting standards that reduce discretion for earnings … accounting-based earnings quality measures and how they reflect changes in earnings quality. Further, we review analytical work … on conservatism of accounting standards and why conservatism can be welfare-enhancing even though it introduces a bias in …

The paper by Bertomeu and Magee (this issue) endogenizes accounting regulation by a majority-seeking regulator and … theory of accounting regulation. Then, it focuses on crucial assumptions, including the exogenous evolution of the economy …

The paper considers two major economic effects created by the Internet for financial accounting and disclosure. First …

We analyze the optimal accounting policy of a financially constrained firm that needs to pledge assets in order to … raise debt capital to finance a risky project. The accounting system provides information about the value of the collateral …. We show that, absent any accounting regulation, the firm finds it optimal to commit to an accounting system that is …

they punish noncompliance only if an internal control weakness enabled accounting manipulation. In other words, enforcement … internal control standard and an intermediate penalty that is only levied in the event of accounting manipulation. Overall, we …