Financial misrepresentation has usually been analysed by large-scale empirical research. However the generality gained from such an approach is at the cost of understanding the rich and complex nature of financial misrepresentation in real organizations. We adopt a case study approach to gain...

There are differences in how Freddie Mac's and Fannie Mae's accounting regimes account for their mortgage guarantee activity - an important part of their business. This diversity results from the accounting choices provided by the relevant, complex accounting guidance as well as differences in...

In this paper we argue that information asymmetry between firm insiders and outside equity investors generates conservatism in financial statements. Conservatism reduces the manager's incentives and ability to manipulate accounting numbers and so reduces information asymmetry and the deadweight...

Accounting choices have usually been analysed by large-scale empirical research. However, the generality gained from such an approach is at the cost of understanding the rich and complex nature of such choice decisions in real organizations. This article presents the results of an in-depth...

In this paper we argue that information asymmetry between firm insiders and outside equity investors generates conservatism in financial statements. Conservatism reduces the manager's incentives and ability to manipulate accounting numbers and so reduces information asymmetry and the deadweight...

In this paper, we investigate the reputational penalties to managers of firms announcing earnings restatements. More specifically, we examine management turnover and the subsequent employment of displaced managers at firms announcing earnings restatements during 1997 or 1998. In contrast to...

Prior literature and anecdotal evidence suggest that failing firms are likely to overstate earnings. I predict and find that as (ex-post) bankrupt firms, that do not (ex-ante) appear to be distressed, approach bankruptcy, their financial statements reflect significantly greater material...

This study examines the reliability of the financial statements of 72 firms that adopted fresh start reporting upon their emergence from Chapter 11 bankruptcy protection. The study focuses on the reliability of the fair value estimate of equity recorded upon the adoption of fresh start...

We use stock return data to investigate the effects of the First Executive (FE) failure on other life insurance firms. In contrast to previous studies, we explicitly test for the separate effects of individual (retail) and institutional customer responses. The announcement of an accounting...

The fundamental relationship between accounting variables and firm valuation is a recurring theme in capital market research. This paper investigates this relationship within a balance sheet context and highlights the importance of controlling for relevant economic factors. We do this by...