This paper studies the accounting treatment of uncertainty and how it affects a firm's capital structure. We distinguish two sources of uncertainty that raise reliability concerns: inherent uncertainty and incentive uncertainty. By inherent uncertainty, we refer to uncertainty about the quality...

Purpose –This study aims to examine whether limited attention leads to the market underreaction to earnings announcement and 10-K filings. Design/methodology/approach–This is an empirical study involving statistical analysis of a large sample of data, obtained from Compustat, CRSP and...