Contrary to the predictions of non-cooperative game theory, trust and reciprocity are commonly reported in simple games. We conduct a one-shot investment game to examine how social distance affects behavior in two-person exchanges. Two aspects of social distance are examined: ex post revelation...

We surveyed 194 experienced, nonprofessional investors to examine the relations between their perceptions of the frequency of financial statement fraud in the economy, their use of financial statement information, the importance they place on conducting their own fraud risk assessments, and...

This paper presents an experiment that examines how enhanced disclosure of nonfinancial performance indicators affects the stock-price estimates of nonprofessional and professional investors. An experiment was conducted using nonprofessional and professional investors who were provided with a...

We investigate how the mandated disclosure of Key Audit Matters (KAMs) and management disclosures in the financial statement footnotes affect auditors’ perceptions of their accountability and their subsequent fair value decisions. We find a substitution effect between KAMs disclosures and...

Using an experiment, we find that corporate social responsibility (CSR) performance measures have a greater impact on investors' firm value estimates when reported in a separate report than when integrated into a financial report. We also find that more investors misclassified CSR information as...

Purpose – This study reviews research that examines economic and behavioural consequences of CSR reporting regulations. Specifically, we evaluate the impact of CSR reporting regulations on (1) reporting quality, (2) capital-markets and (3) firm behaviour. Design/methodology/approach – We...

A significant amount of earnings management (EM) research has treated managers' EM decision processes as a “black box”. The objective of this study is to begin to open the black box though examining the relative importance of economic factors as well as ethical considerations in managers' EM...

In 2006, the SEC amended the disclosure requirements for executive compensation and stock ownership. This paper examines the effects of these amendments on (1) the association between equity-based executive incentives and firm payout choice, and (2) the association between executive compensation...