The paper by Bertomeu and Magee (this issue) endogenizes accounting regulation by a majority-seeking regulator and examines how the economic cycle affects mandatory reporting quality. This discussion puts the paper in the broader context of a theory of accounting regulation. Then, it focuses on...

Changes in equity markets in the major developed countries and overview of the book -- The usefulness of financial accounting statements toe investors in securities -- The roles and usefulness of auditing and accounting standards -- Corporate financial reporting and regulation in the United...

This paper examines how the characteristics of accounting systems and management incentives interact and collectively determine financial reporting quality. We develop a rational expectations equilibrium model that features a steady-state firm with investments, financial and non-financial...