We study experimentally how the conflict of interest faced by tax consultants – between telling the truth and pleasing their clients – affects their professional decision-making process, under different levels of scrutiny in the form of an audit. Eighty percent of the experiment's...

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...

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...