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A premise of standard setters and of much empirical research is that improving the quality of accounting standards and their implementation increases information in capital markets. This paper challenges this premise and shows that there are situations in which “better”, i.e., more...
Persistent link: https://www.econbiz.de/10013024185
Motivated by regulatory assertions that the purpose of SOX was to restore investor confidence in the securities markets, we examine changes in the stock market reaction to earnings restatements following the implementation of SOX in order to evaluate whether the Act's reforms have had a...
Persistent link: https://www.econbiz.de/10013139644
The ultimate objective of financial reporting is to provide transparent financial statements and disclosures that meet the informational needs of investors and other users of financial statements. One of the primary goals of the Sarbanes-Oxley Act (USHR 2002) is to provide more reliable...
Persistent link: https://www.econbiz.de/10013123899
Persistent link: https://www.econbiz.de/10011698056
The U.S. Congress passage of the Sarbanes-Oxley Act of 2002 (SOX) was a direct response to the accounting scandals of the 1990s and an attempt to reform the financial/business reporting process. Due to corporate malfeasance in the United States since the mid 1990s, there has been a significant...
Persistent link: https://www.econbiz.de/10012948854
Financial statements represent an instrument by which relevant information about a company is passed on to its users. Based on the information presented in the financial statements, i.e. information on the financial position and performance of the company, and generated cash flows and capital,...
Persistent link: https://www.econbiz.de/10012888111
In this study, I examine whether management discloses areas with higher financial reporting risk as critical accounting policies (CAPs) and how investors react to restatements of areas previously disclosed as CAPs. Through CAPs, management annually discloses the accounting policies that it views...
Persistent link: https://www.econbiz.de/10014361873
In this paper, we present a review of tax research in accounting. We outline U.S. GAAP accounting rules for the following four income tax notes and survey the area of research literature dealing with the information content provided by U.S. GAAP: (1) unrecognized tax benefits, (2) valuation...
Persistent link: https://www.econbiz.de/10011849270
Prior studies find that delayed earnings announcements tend to communicate unfavorable news, and investors consequently react negatively when firms delay earnings announcements. However, these findings do not explain why investors discount delayed earnings, even after controlling for the...
Persistent link: https://www.econbiz.de/10012854762
The SEC XBRL mandate enables the gathering of accounting numbers to be fully automatic in a database-like manner which provides vast opportunities for financial analysis. Using this functionality, this study proposes a simple analytical prescreening measure that uses abnormal digit distributions...
Persistent link: https://www.econbiz.de/10013035315