We examine whether restricting managers’ discretion through GAAP impacts the usefulness of accounting information in debt contracting. Our study informs standard setters and regulators regarding the debt-contracting implications of limiting managers’ discretion via accounting standards. We...

This study examines the impact of accounting comparability on financial reporting quality and the extent to which financial statement users understand the implications of firms' accruals. We predict that comparability improves the information environment, which not only enhances the ability of...

This study examines the effects of a prominent principles-based standard (SFAS-142, Goodwill and Other Intangible Assets) on financial statement comparability. Using non-goodwill-intensive firms as our control group, we implement a difference-in-differences research design to examine how...