Purpose: The purpose of this paper is to investigate how managerial disclosure of imprecise information about revenue recognition affects investors’ perceptions of corporate and management performance. Specifically, the authors focus on how outcome and probability dimensions and their...

The objective of this study is to provide additional evidence regarding the effect of ambiguity on auditors' and investors' judgments when they evaluate managers' disclosures about loss contingencies. Inspired by Nelson and Kinney (1997), we conducted an experiment where auditors and investors...