We consider a two-period LEN-type agency problem. The principal needs to implement one out of two accounting systems … relevant system reports an accounting signal in the period in which it is produced. The reliable system reports a more precise … signal, but with a one period delay. Accounting information is contractible only if it is reported within the two …

Executive compensation contracts use information from markets and accounting to elicit efficient incentives. We … structurally estimate the contribution of each performance to quantify the relative importance of price versus accounting. For … paid to elicit incentives, amounts to $4.17 million; further, in counterfactuals, we show that absent reliable accounting …

Armstrong et al. (2022) review the empirical methods used in the accounting literature to draw causal inferences. They … as the use of these methods in the accounting literature. In this discussion, I complement their review by broadening the … perspective. I argue for a design-based approach to accounting research that shifts attention from methods to the entire research …

Many questions have been raised as to whether financial accounting has become more conservative. The value relevance … and qualitative characteristics of accounting information have become topics of particular relevance given the role they … in a certain market. Given the quality of accounting information – which has resulted in misleading and inaccurate …