Using hand collected Level 3 data, we find that banks near key capital ratios report higher unrealized gains in Level 3 assets, consistent with managers using unrealized gains in earnings from Level 3 valuations to boost capital ratios. Additionally, we document an incremental pricing discount...

This paper provides a wide-ranging and up-to-date (1997-2016) review of the archival empirical risk-reporting literature. The reviewed papers are classified into two principal themes: the incentives for and/or informativeness of risk reporting. Our review demonstrates areas of significant...

The development of modern information and technologies in systems result in significant changes in a company's activity and changes in accounting information systems. Accounting system development goes back to Babylon, 3600 BC, when the oldest record of a business event occurred. There is ample...

This study uses data on Japanese listed companies for the period 2009 to 2012 to examine the incentive factors for the (non-)disclosure of material weakness (MW) in internal control over financial reporting. The propensity score-matching results of matched and potential MW companies from the...

This study investigates how a financial market mechanism, auditing, shapes a firm's engagement in global value chains and product choice. We examine the effect of the Public Company Accounting Oversight Board's (PCAOB) inspections on non-U.S. auditors, which induce higher reporting quality of...

This paper examines the 2017 audit inspection scandal involving KPMG — one of the fewbreaches of “tone at the top” at a Big 4 audit firm — to study whether and how the scandal affectsKPMG and its clients. From the federal court trial related to the scandal, we construct a novel dataset...

This study provides descriptive evidence on how firms respond to activist short seller reports and how these responses are associated with outcomes for the targeted firms. We show that the frequency of these reports has grown substantially in recent years. While we find that firms respond only...

At the beginning of the 1990s UK accounting standards were described as a ‘laughing stock’. By the millennium they were widely acclaimed and in some respects world-leading. This paper explores some of the key technical advances in this period, and the political processes employed to secure...

We examine the impact of IFRS adoption on enforcement costs for financial statement preparers. Regulators argue that the flexibility of IFRS makes proving accounting violations more difficult, while practitioners believe that more detailed GAAP standards provide a better safeguard against...

Audit committee (AC) disclosures are important for stakeholders seeking to evaluate and hold ACs accountable. Despite a wave of heightened attention in the past decade, disclosure changes have tapered off in recent years and are slow to incorporate the AC’s expanding set of oversight...