The Taxpayer Relief Act of 1997 (TRA 1997) reduced the net operating loss (NOL) carryback period from three to two years, thereby creating a short term incentive effect due to the increased opportunity cost of not recognizing a NOL in the transitional fiscal year of 1997. Specifically, failure...

The Taxpayer Relief Act of 1997 (TRA 1997) reduced the net operating loss (NOL) carryback period from three to two years, thereby creating a short term incentive effect due to the increased opportunity cost of not recognizing a NOL in the transitional fiscal year of 1997. Specifically, failure...

This paper examines whether a country's corporate transparency environment, which includes the quality of accounting information, contributes to efficient resource allocation. Based on a cross-country study of 37 manufacturing industries in 37 countries, we provide three pieces of related...

Extant theoretical research posits that information asymmetry and agency issues affect the cost of external financing and hence impact firms' ability to finance its growth opportunities. In contrast, the literature on disclosure policy posits that an expanded and credible disclosure lowers the...

Prior research has posited that market imperfections and the lack of institutions which protect investor interests create a divergence between the cost of internal and external funds, thereby constraining firms' ability to fund investment projects through external financing. One consequence of...

This paper investigates voluntary adoptions of International Accounting Standards (IAS) by private enterprises, and builds on prior research which posits that higher quality financial reports through IAS adoption can reduce information asymmetry and facilitate contracting with external parties....