Studies comparing IFRS with U.S. GAAP generally focus on differences in the attributes and consequences of the recognized financial items. We, in contrast, focus on voluntary disclosure resulting from arguably the most significant difference between IFRS and GAAP: the capitalization of...

We present a model of an insolvent firm that may take advantage of a "soft-touch" government creditor in order to buy time before filing for reorganization, behavior we refer to as "claims substitution." Parameters in the model reflect the enforcement of absolute priority and government priority...

Using hand-collected data on Israeli firms' unrealized earnings and debt restructurings following adoption of the International Financial Reporting Standards (IFRS), we investigate whether and how dividend payouts based on unrealized revaluation earnings affect a firm's default risk. Our results...

Enterprise Information Technology Systems are major corporate assets upon which corporate operational health is heavily dependent. FASB's Statement No. 86 (SFAS 86) and AICPA's Statement of Position 98-1 (SOP 98-1) are the current accounting standards dealing with how these assets appear on...

The largest U.S. banks have adopted, in a staggered manner, an environmental and social risk management framework. Based on a large sample of borrowers, utilizing a staggered difference-in-differences design, we document a significant increase in environmental protection provisions in the loan...