The phenomenon of creative accounting has attracted the attention of researchers for decades, especially in the … researchers and practitioners to determine any manipulation in financial reporting, the practice of creative accounting is still … disclosure with respect to enhancing the impact of creative accounting determinants and financial reporting quality in the …

We consider a two-period LEN-type agency problem. The principal needs to implement one out of two accounting systems … relevant system reports an accounting signal in the period in which it is produced. The reliable system reports a more precise … signal, but with a one period delay. Accounting information is contractible only if it is reported within the two …

We examine the relation between accounting quality and debt concentration in corporate capital structures (i.e., firms … strong link between debt concentration and creditors' coordination costs and the importance of accounting quality in reducing … these costs, we hypothesize that firms with higher accounting quality have less concentrated debt structures. Measuring …

). As firm value is non‐contractible by assumption, an incentive contract is written on accounting income. The manager … with regard to accounting discretion. Third, he needs to specify contracting details. If an internal information system is … environment becomes more volatile. Holding either the IIS choice or the accounting system choice constant, we observe the …