This study finds that the requirement of ASC 842 for firms to capitalize operating leases in financial statements beginning in 2019 resulted in firms affected by the standard reducing existing debt amounts on average between 7% and 10% relative to unaffected firms. We also find that firms with...

In 2014, all larger Swedish private firms were required, at short notice, to adopt a new reporting standard (K3) based on IFRS for SMEs (2009 version). Using this shock to the reporting environment, we study the effects of the new reporting standard on groups’ financial reporting properties...

In 2023 the IFRS Foundation published its first two IFRS Sustainability Disclosure Standards. Those standards were guided by an architecture, or blueprint, that I developed for a comprehensive set of reporting requirements that would ensure that sustainability-related disclosures would become...

In this study, we examine the impact of fair value accounting on corporate debt structures, i.e., debt conversion privilege and maturity term. We argue that fair value accounting affects agency conflicts between debtholders and shareholders via its impact on financial reporting quality....

Conventional and commonly held wisdom with respect to the adoption of International Financial Reporting Standards (IFRS) is that they lead to improved financial reporting quality and comparability and thereby favorable economic consequences. There are however contradicting evidences disproving...

This study investigates the effect of a security regulation that occurs concomitantly with International Financial Reporting Standards (IFRS) adoption on the information content of earnings announcements in Italy. To identify the effect of this regulation, we use a treatment (i.e., Italy) and a...

The number of firms reporting earnings on a non-GAAP basis has dramatically increased over the past decade, and non-GAAP reporting is now commonplace in capital markets. This proliferation of non-GAAP reporting has renewed both regulators' and standard setters' interest in these alternative...

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...

We examine whether (and to what extent) accounting regulation intended to improve disclosure can lead to higher disclosure quality in the absence of a change in preparer incentives. We exploit a sequence of two similar regulatory changes, one under US GAAP and the other under IFRS, which have...