In this study, we examine whether an accounting choice that firms make for external financial reporting purposes influences the selling prices that managers seek to obtain when they dispose of used capital assets. From a normative perspective, managers should obtain the highest possible selling...

Due to the paucity of immediate and direct information about financial disclosure credibility, it is often difficult for investors to assess the credibility of financial disclosures (e.g. whether reported earnings are biased). Given this situation, the present study proposes and finds that...