Whether the information environment affects the cost of capital is a fundamental question in accounting and finance research. Relying on theories about competition between informed investors as well as the pricing of information asymmetry, we hypothesize a cross-sectional variation in the...

Little is known about the effects of accounting regulation on private insurers. In this paper, we examine the uniqueness of the tax deductibility of insurers’ loss accruals. We find that private insurers’ overstatement of loss accruals in tax planning significantly decreases after adoption...

Effective from January 1, 2018, IFRS 9 changed banks' accounting for the impairment of financial assets by replacing the incurred credit loss (ICL) model with the expected credit loss (ECL) model, which enhances the timeliness of accounting for credit losses. Using a sample of international...

We examine how options trading affects voluntary corporate disclosure to explore how managers strategically disclose in light of potential managerial learning from the options market. We find that options trading reduces the likelihood and frequency of management earnings forecasts, suggesting...

Labor unemployment insurance reduces unemployment concerns. We argue that these benefitsmoderate incentives to smooth earnings to reduce employees' concerns about unemployment risk.Using exogenous variations in unemployment insurance benefits, we find evidence consistent withthis argument. We...

We examine how options trading affects voluntary corporate disclosure, so that we can shed light on whether managers’ potential learning from the options market induces them to withhold disclosure. We find that options trading reduces the likelihood and frequency of management earnings...