Earnings asymmetric timeliness in recognizing losses versus gains is the most commonly used measure of conditional accounting conservatism. However, this measure captures both accrual asymmetric timeliness and operating cash flow (CFO) asymmetric timeliness. Because cash flow asymmetry is not...

We examine how informed trading activities affect the market reaction to accounting restatements. We find significantly less negative reactions to accounting estatements when managers are net purchasers of stock before the restatement, and significantly more negative market reactions when...

We examine whether managers convey more information via voluntary disclosure channels when standard-setters limit managers' discretion in GAAP. We estimate the extent to which standard setters limit managers' discretion by counting the number of times obligatory modal verbs are mentioned in the...