Purpose – The aim is to explore whether principles-based versus rules-based accounting standards have an effect on measures of financial reporting quality and earnings management strategies. Design/methodology/approach – This study uses a firm-year-specific variable that captures the extent...

Portuguese Abstract: A inexistência de um modelo padronizado para a apresentação das demonstrações financeiras dificulta sua análise por parte dos stakeholders, designadamente dos resultados financeiros, em virtude da flexibilidade existente na International Accounting Standards (ias) 1....

This study examines whether requiring the disclosure of audited financial statements disciplines managers' mergers and acquisitions (M&As) decisions. When an M&A transaction meets certain disclosure thresholds, the Securities and Exchange Commission (SEC) requires the public acquirer to disclose...

We argue that, in response to increased scrutiny and greater attention to accruals versus sales, firms become more likely to engage in accrual conversion (AC) cash management aimed at aligning cash and accruals with earnings and sales (e.g., by factoring of receivables). In doing so, they reduce...

Today is the day in which all the business organizations are running behind the technology for achieving its goal by the rendering of goods and services in an efficient manner. But not all the functions of business organizations have adopted the technology. For instance, accounting and auditing...

Financing terrorist organizations and activities must be fought on at least four fronts within public accounting: the SEC Audit Requirements PCAOB Auditing Standards, the AICPA Code of Professional Conduct, and state licensing statutes. This paper examines the ethical and legal obligations the...

Starting from 2006, UK listed companies are required to analyse their performance by using Key Performance Indicators (KPIs) in specific sections of their annual reports and the UK Accounting Standard Board (ASB) provides companies with guidelines for the best practice regarding KPI disclosure....

Theory suggests that increased levels of corporate disclosure lead to a decrease in cost of equity via the reduction of estimation risk. We examine compliance levels with IFRS 3 and IAS 36 mandated goodwill related disclosure and their association with firms' implied cost of equity capital...

This paper investigates whether investors respond to explanatory language added to unqualified audit reports. Although prior research finds an association between auditor explanatory language and lower financial reporting quality, surveys suggest that many investors limit their attention to the...

The hypothesis that political costs caused by the regulatory process impact upon accounting has been tested extensively and has found considerable empirical support. However, most studies use data from the United States. Whether the conclusions carry over to different institutional settings is...