This study investigates whether a shock to financial reporting has a differential impact on debt and equity markets. Using macroeconomic data and a pre-post design centered in 2005, we find that IFRS adoption has a significantly greater effect on foreign debt than on foreign equity investment...

We exploit survey data from the Panel Study of Entrepreneurial Dynamics to investigate the roleof accounting in the likelihood that a small business more quickly achieves and maintains positiveoperating cash flow (profitability). We examine several potential aspects of accounting includingthe...

We examine stakeholder responses to publicly traded firms speaking out on voting reform laws in the U.S. State of Georgia via the lens of retail customer store traffic. For firms that speak out, we find that the number of customer visits and the number of visitors at their individual store...

This study examines whether a reduction in processing costs of transaction-level disclosure enables a market-wide effect in the form of increased systemic risk. Despite purported regulatory benefits of transparency, a reduction in processing costs of transaction-level disclosure can facilitate...

We develop a theory and a text-analytic method to model managers’ translation of economic activity into the preparation of Management’s Discussion and Analysis (MD&A). Our approach considers both quantitative and qualitative accounting information by linking numerical changes in the...

Prior work suggests that greater earnings disaggregation in financial statements leads to favorable market outcomes. This perspective is based on a fundamental presumption that the disaggregation separates earnings components with heterogeneous characteristics. We hypothesize that the...

Accruals are fundamental to financial reporting and are the underlying innovation of accounting. Despite this, accounting research has provided little understanding of how economic forces affect a firm's level of accruals and limited guidance for forming expectations of accruals based on ex ante...

We document a growing disparity in earnings disclosure mechanisms. Firms are increasingly disclosing earnings announcements (EA) concurrently with the 10-K filing instead of first issuing a ‘stand-alone' EA. Firm adoption of concurrent EA/10-Ks is associated with lower investor sophistication,...

We document that the conventional disclosure practice of ‘stand-alone' earnings announcements (EAs), which preempt 10-K filings, is steadily disappearing over time. Instead, firms are increasingly adopting the disclosure strategy of releasing the EA concurrently with the 10-K. We first examine...

This study examines whether the improvement in analyst forecast accuracy around mandatory IFRS adoption is associated with the improvement in the accuracy of financial statement-based forecasts. We find significant out-of-sample improvement in financial statement-based forecast accuracy around...