Audit firms increasingly rely on audit approaches using data and analytics (D&A) tools but express concern that external reviewers will excessively scrutinize such approaches. We conduct two experiments in which experienced external reviewers conduct an engagement review. We manipulate whether...

We investigate whether management's decision regarding the recognition of the valuation allowance (VA) for deferred tax assets provides incremental information about the persistence of accounting losses. We introduce a classification scheme that assigns loss firm-years into three categories...

We investigate whether management's decision regarding the recognition of the valuation allowance for deferred tax assets (VA) under ASC 740 provides incremental information about the persistence of accounting losses. We introduce a classification scheme that assigns loss firm-years into three...

This study examines how the use of causal language in conveying relative performance feedback impacts subsequent task performance and affect. Studies on performance feedback and evaluation in accounting research have focused on the use of quantitative performance measures and the availability of...

We investigate the joint effect of managers' self-inclusive language (SIL) and performance news on investors' reactions to accounting disclosures. We identify two types of SIL: individual SIL, which includes first-person singular pronouns (e.g., I, me) and collective SIL, which includes...

In this paper, we investigate whether the current references to probability in standard setters' conceptual definitions of assets and liabilities cause individuals to believe that the probability of a future transfer of economic benefits must be above some meaningful threshold for an asset or a...

I examine how firm-investor communications on social media affect investors' perceptions of the firm. I focus on a case in which a Twitter user criticizes a discretionary accrual adjustment and management chooses whether and how to respond. I collect data using multiple experiments in which I...

We conduct two experiments in the securities-based crowdfunding setting to investigate whether, for psychological reasons, some investors avoid accounting information they could and would use in their decision making. We find in our first experiment nonprofessional investors more likely to...

Using data from an information provider in the cannabis industry, we observe that managers of retail dispensaries appear to suffer from the “ostrich effect”—the selective acquisition of news based on an expectation of the likely hedonic response (e.g., avoiding bad news to avoid...