Financial accounting affords considerable discretion to firms in aggregating internal information for external dissemination, yet little evidence exists about the consequences of such aggregation. We examine a central operational effect by studying whether withholding disaggregated cost...

Financial accounting is essential to financial accountability, which is essential to a prosperous society. There are many examples of how improvements to financial accounting, supported by research, have enhanced financial accountability. Such research requires a strong relation between...

This supplement is a companion piece to NeuroAccounting: Consilience Between the Biologically-Evolved Brain and Culturally-Evolved Accounting Principles. We provide brief summaries of five studies from neuroscience along with key aspects of the findings that are cited in the NeuroAccounting paper

We examine the factors firms consider when deciding which managers participate in their earnings conference calls and the consequences of this decision. We find significant variation in participation, with frequent participation by non-CEO/CFO/IR managers (38% of calls) and managers who only...

Although prior research presents employees' subjective valuations of their stock options as being either below or above firms' opportunity cost of issuing options, we examine subjective valuations in terms of their distribution around cost. We argue that variation of subjective valuations within...

A perplexing yet persistent empirical finding is that individuals assess probabilities in words and in numbers nearly equivalently, and theorists have called for future research to search for factors that cause differences. This study uses an accounting context in which individuals are commonly...

In the Dueling Experts Game, adversarial experts strategically produce quot;goodquot; or quot;badquot; evidence to support their partisan testimony. Good evidence is probative while bad evidence has no evidential value. The new feature of this Game is that Judge sometimes erroneously identifies...

Banker and Hughes (1994) have demonstrated the economic sufficiency of activity-based unit costs for a firm's pricing and capacity decisions under uncertainty. This paper investigates the performance of the corresponding policy in a setting where the firm can adapt to changing demand conditions...

In this paper, I examine issues relating to managers' ability to influence their performance evaluation. In contrast to conventional wisdom, I show that such influencing is not necessarily deleterious to shareholder welfare, despite the fact that it is aimed at maximizing the managers'...

We experimentally demonstrate a causal link between recordkeeping and reciprocal exchange. Recordkeeping improves memory of past interactions in a complex exchange environment, which promotes reputation formation and decision coordination. Economies with recordkeeping exhibit a beneficially...