This paper questions the ideal of comparability which is often mobilized by standard setters when justifying new – or “improvement” to existing – accounting standards. The target of our analysis is constituted by the thoughts of sophisticated users of financial statements when reflecting...

This study uses an experimental approach to examine how the perceptions and decisions of prospective nonprofessional investors are influenced by risk disclosures in the Management Discussion and Analysis (MD&A). The between-subjects experiment used 157 MBA students as nonprofessional investors....