Using proprietary market microstructure data of Milan Stock Exchange and strategic plan presentations of Italian firms as disclosure events we explore the distributional effects of voluntary disclosure. We document systematic trading patterns around our disclosure events that on average generate...

We investigate whether audit reforms affect the information role of audits in a country where the audit traditionally serves a statutory reporting function. Specifically, we investigate the audit market effects of audit reforms mandated by the German government in the Act on Control and...

Several studies document ex-post effects of accounting standards on firms’ business activities – such as reduced lease financing, R&D, or hedging. Are such ‘real effects’ unforeseen by accounting standard setters (as is sometimes assumed), or might they even be intended – to promote...

This paper analyzes the role of financial accounting and reporting in the current financial crisis. Starting outlining the objectives of financial accounting and giving a brief overview over the relevant accounting standards for financial instruments, it highlights the potentially pro-cyclical...

In their joint framework project, the FASB and the IASB recently proposed dropping stewardship as a separate objective of financial accounting, because the Boards view stewardship and valuation usefulness as compatible sub-objectives ranking under an overall objective of decision usefulness....