We use an experiment with experienced managers to provide more-direct evidence on how reporting goals and firm performance influence language choices. We find that bad news disclosures are less readable than good news, but only when managers have a stronger self-enhancement motive. Our results...

We review recent behavioral studies of the effects of regulation on earnings management and accounting choice. Our review examines the impact of financial reporting, auditing, and other corporate governance regulations on the beliefs and choices of managers, auditors and corporate directors....

Investments that are classified as Level 2 within the fair value hierarchy account for approximately 92% of US banks' fair value assets. We report an experiment that examines how experienced auditors apply current PCAOB guidance when auditing portfolios of these assets. We hypothesize and find...

In this paper, we examine the growing number of behavioral studies of how financial reporting, auditing, and other corporate governance regulations affect earnings management and accounting choice-related decisions of managers, auditors, and directors. We first describe how experimental and...

This paper outlines strengths and limitations of three approaches to providing process evidence in experimental accounting research: moderation, mediation, and multiple experiments and methods. We argue that the research question determines the importance of process evidence in experimental...

This paper independently replicates the results of the survey of experienced financial managers reported in section 4 of Libby and Rennekamp (2012). Using the same questions as Libby and Rennekamp (2012), we survey 110 experienced managers to examine their beliefs about the relationship between...

Sorting tasks have provided researchers with valuable alternatives to traditional paired-comparison similarity judgments. They are particularly well-suited to studies involving large stimulus sets where exhaustive paired-comparison judgments become infeasible, especially in psychological studies...

We survey recent (mainly US) research on the effects of earnings presentation attributes on manager and user behaviour. The literature we discuss relates to three primary earnings presentation attributes: (1) disaggregation (vertical and horizontal), (2) location (recognition vs. disclosure,...

This paper uses recent experimental studies of financial accounting to illustrate our view of how such experiments can be conducted successfully. Rather than provide an exhaustive review of the literature, we focus on how particular examples illustrate successful use of experiments to determine...

This paper reports results of two experiments aimed at (1) assessing whether companies are less willing to record immaterial income decreasing audit differences when the adjustment causes the company to report earnings below the consensus analyst forecast and (2) determining whether...