We study the historical development of Slovenian Accounting Standards (SAS) and their association with accounting quality (AQ). We focus on private firms where the financial reporting process is characterised by low demand for high-quality reporting. We investigate three distinct editions of SAS...

This study examines how private firms’ disclosures create information externalities for public firms’ information environment. Exploiting a setting with varying importance of private firms’ financial information, we document that public firms’ forecasted earnings are less accurate and...