In today's uncertain financial climate it is particularly important for entities to explain their financial performance relative to their expectations. Therefore, the paper analyzes the quality and quantity of management reporting in Germany's publicly traded MDAX and SDAX companies using a...

We examine whether vocal markers of cognitive dissonance are useful for detecting financial misreporting. We use speech samples of CEOs during earnings conference calls and generate vocal dissonance markers using automated vocal emotion analysis software. We begin by assessing construct validity...

eXtensible Business Reporting Language (XBRL) is an open standard for the electronic preparation and exchange of business information. The purpose of this paper is to empirically investigate the influence of several firm-specific characteristics on the extent of voluntary disclosure in XBRL. I...

Using the setting of hedge funds, I find that audit regulation stifles the misreporting of returns. Not only does the presence of this regulation mitigate misreporting, it also appears to narrow the gap in audit quality between Big 4 and non-Big 4 auditors. Specifically, there is a large...

Initial public offering (IPO) companies are exempt from Section 404 of the Sarbanes-Oxley Act of 2002, leaving investors to assess the quality of an IPO company's internal controls, which affect the quality of management-provided financial information, without an opinion on internal controls...

Corporate social responsibility (CSR) reporting plays a key role in stakeholder management, particularly in light of the increased demand for non-financial reporting after the financial crisis of 2008–09. This literature review evaluates 51 empirical studies that concentrate on the influence...

We analyze the reporting strategies of firms and the investigation strategies of auditors in an archetype principles-based financial reporting system. To this end, we add a verification stage to a standard cheap-talk game, and apply the resulting game to financial reporting. We show that for a...

This experimental study analyses whether reporting an accounting estimate as a key audit matter (KAM) can influence auditors' judgment about the reported estimate under the varying condition of implicit or no client pressure. Using the theory of moral licensing, motivated reasoning and...

This study provides evidence that binary signals in audit reports are unable to fully communicate underlying risks that are inherently continuous in nature. Specifically, we find that companies whose audit reports signal an improvement in internal control effectiveness relative to the prior year...

This study provides evidence that binary signals in audit reports are unable to fully communicate underlying risks that are inherently continuous in nature. Specifically, we find that companies whose audit reports signal an improvement in internal control effectiveness relative to the prior year...