We derive a measure of diluted EPS that incorporates economic implications of the dilutive effects of employee stock options. We show that the existing FASB treasury-stock method of accounting for the dilutive effects of outstanding options systematically understates the dilutive effect of stock...

I investigate how the use and voluntary disclosure of synthetic leases is affected by incentives to defer cash outflows and keep debt off the balance sheet. I find that managers of cash-constrained firms with incentives to defer cash payments are more likely to finance asset purchases with...

We model an environment in which firms disclose only one side of a hedging transaction, namely the gain or loss on the forward. However, the firm cannot credibly disclose the other side of the hedging transaction, namely the underlying exposure that is being hedged. We show that because the firm...

In the light of IASB's statement to drop stewardship as a separate objective of financial accounting and the ongoing debate about increasing the disclosure of soft information, we investigate the economic consequences of publicly reported soft information from a stewardship perspective. In a LEN...

Using a random sample of companies from France, Germany, and the UK (100 from each country) I examine the comparability/diversity of fair value accounting of goodwill under International Financial Reporting Standards (IFRS). I predict and find that large companies operating in an environment...

Prior studies of annual report timing treat all reports filed before SEC deadlines as similar. We show this is not the case. Nearly 40 percent of 10-Ks are filed well in advance of SEC deadlines, and the propensity of early reporting continues to increase. We find that the firm characteristics...

Governments, organizations and individuals around the world are paying increasing attention to climate change and carbon emissions. This paper argues that a new international assurance standard on carbon emissions disclosures is an appropriate response by the auditing and assurance profession to...

In the last decade undergoing accounting harmonization processes and their impact on corporate disclosure was continually discussed in the scientific literature. This paper extends this analysis by evaluating Lithuanian case. The aim of this study is to assess accounting regulation changes in...

This study investigates the effectiveness of changes in the regulatory environment on the quality of compliance to mandatory disclosure requirements in Bangladesh. Statistical analysis of the Mandatory Disclosure Index, as developed in this paper using annual reports of the exchange-listed firms...

Statement of Financial Accounting Standards No. 158 significantly changes how firms report the financial position of their defined-benefit pension plans. Under this new standard, firms must report the funded status, equal to the net of the projected benefit obligation and the fair value of their...