This paper examines the economic consequences of mandatory IFRS reporting around the world. We analyze the effects on market liquidity, cost of capital and Tobin's q in 26 countries using a large sample of firms that are mandated to adopt IFRS. We find that, on average, market liquidity...

We examine the relationship between disclosure as evidenced by the possession of the GFOA certificate for excellence in financial reporting (COA) and the cost of debt in the municipal bond market. Using a large database of tax-exempt municipal bonds issued by cities during 1994-2003, we find a...

Conventional wisdom suggests that audit risk disclosure improves the quality of audited financial reports because the disclosure reduces information asymmetry between investors and companies. In contrast, we show that audit risk disclosure provides companies with another channel to influence...

This paper examines whether a firm's degree of conservatism in financial reporting is associated with its voluntary non-financial corporate social responsibility (CSR) disclosures and the stock price reaction to such disclosures. Theoretical and empirical studies find that the amount of...

We investigate whether accounting conservatism, which has been found to be effective in constraining management opportunism in other settings, constrains upward tone management (UTM) in the MD&A. We hypothesize that conservatism makes it harder for managers to opportunistically downplay bad news...