Hundreds of thousands of years ago, our perceptions developed beyond their analog origins to include digital modes. It was a key transformation that may well have distinguished genus homo from its predecessors. Since digitization necessarily discards at least some of the information contained in...

We investigate whether auditor verification of internal controls over financial reporting (i.e., ICFR verification) affects a firm’s likelihood of voluntary disclosure and investor’s perception of firm’s voluntary disclosure decisions. We exploit a recent amendment to Smaller Reporting...

Information aggregation is a key economic function of markets. Evidence on limitations of human cognitive abilities have led some to doubt the usefulness and relevance of rational expectations equilibria in modeling information aggregation. We report results of a computational experiment with...

Deliberate human action receives the first priority in researchers’ attempts to understand social phenomena. Organization theory and strategy literature are no exceptions. Strategy as a purposive plan of action or path towards intended ends has been studied in the context of agents’...

Our study documents the direct and spillover costs arising from the loss of reputation for credit rating agencies (CRAs). Credit ratings are essential for a well-functioning debt market, and the integrity of these ratings depends on the reputation of the CRAs. Using data from the unexpected...

In seeking to replace accounting ‘conventions’ by ‘concepts’ in the pursuit of principles-based standards, the FASB/IASB joint project on the conceptual framework has grounded its approach on a well-known definition of ‘income’ by Hicks. We welcome the use of theories by accounting...

Those using artificial intelligence (AI) in finance and other fields seek to meet or beat human intelligence by a chosen index of performance appropriate to each context. Efforts are focused on finding ways of increasing the intelligence of artificial agents through analysis, machine learning or...