Prior studies document that managers consider a variety of costs and benefits in their decisions to initiate earnings guidance. Using both an abstract experiment and a survey of experienced financial managers, we provide evidence that managerial overconfidence may also contribute to the decision...

We test whether investors react more strongly to narrative disclosures when the CEO's presence or association with the message is more salient in the disclosure, holding all other information constant. In our first experiment, we manipulate whether a CEO uses more personal pronouns (e.g.,...

This paper examines how the reversibility of the accounting effect of asset impairments affects managers' investment decisions. We conduct two experiments in which participants act as CEO of a multi-division electronics company that suffers a large asset impairment at one of the divisions....

This paper examines how the reversibility of the accounting effect of asset impairments affects managers' investment decisions. We conduct two experiments in which participants act as CEO of a multi-division electronics company that suffers a large asset impairment at one of the divisions....

Prior research argues that sequential decisions lead to a slippery slope toward unethical or fraudulent behavior, with little evidence to support such claims. We conduct two experiments which demonstrate the existence of the slippery slope in a controlled setting, and investigate how it leads...

Prior research finds that individuals struggle to detect deception at rates better than chance, and that this extends to accounting settings where users evaluate the veracity of management's claims. However, these findings relate to settings where individuals make conscious judgments about...

Prior literature finds that short selling is beneficial to the market because it increases liquidity and helps to discipline optimistic market prices. In this paper we use two controlled experiments to examine the potential for an unintended consequence of allowing short selling or easing short...

We conduct two experiments to examine whether artificial intelligence can reduce the effects of independence conflicts on audit firm liability. Our experiments manipulate (1) whether procedures are performed by an auditor or an artificial intelligence and (2) whether the audit firm was careful...