We examine how informed trading activities affect the market reaction to accounting restatements. We find significantly less negative reactions to accounting estatements when managers are net purchasers of stock before the restatement, and significantly more negative market reactions when...

The controversy about the choice among accounting alternatives is often based on arguments suggesting heuristic behaviour by market participants and firm managers. Debates focus on whether accounting methodology systematically alters reported earnings and whether this effect may add or subtract...

The central focus of this paper is on how the quality of anticipated mandatory accounting reports affects the bias in and likelihood of voluntary management disclosures. Our model integrates two paradigms used to analyze management disclosures, those in which managers choose to disclose or not...

Purpose – The United Arab Emirates (UAE) is evolving and developing rapidly. This nation has a long tradition rooted in Arabic and Islamic culture and subcultures. As the country is developing into an economic force in the region, more interest is focused on its corporate governance,...

This study examines whether institutional ownership and analyst following affect the value relevance of disclosed vs. recognized pension liabilities. Using a sample of firms with pension liabilities that were disclosed under SFAS No. 87 and subsequently recognized under SFAS No. 158 from 1999 to...

In this study, we examine whether XBRL disclosure (i.e., interactive data submissions) reduces the magnitude of accounting accruals for firms during SEC mandated years. Using mandated XBRL filers, we first compare the magnitude of absolute discretionary accruals in the XBRL-adoption quarters...

We examine the 'confirmation' hypothesis that audited financial reporting and disclosure of managers' private information are complements, because independent verification of outcomes disciplines and hence enhances disclosure credibility. Committing to higher audit fees (a measure of financial...

The Sarbanes-Oxley Act 2002 of the U. S. was passed to instil investor confidence in financial reporting following the spectacular collapse of high ranking firms in the US. Sections 302 and 404 provide clear guidelines to both management and their auditors on their respective roles as well as...

I use a sample of 409 companies that restate their earnings in 1997-2001 to examine penalties for outside directors, particularly audit committee members, when their companies experience accounting restatements. Penalties from lawsuits and Securities Exchange Commission (SEC) actions are...