We examine the valuation of financial statement note information at the time of 10-K filings. We find that stock returns around 10-K filings are positively related to accounting adjustments calculated from financial statement note information. We further document that the likelihood of equity...

Investors, regulators, academics, and researchers all emphasize the importance of financial statement comparability. However, an empirical construct of comparability is typically not specified. In addition, little evidence exists on the benefits of comparability to users. This study attempts to...

We examine the valuation of financial statement note information at the time of 10-K filings. We conjecture that financial statement users explore the information in these notes to compute accounting adjustments to correct the imperfections in financial statements. We find that stock returns...