We examine whether financial statement note disclosures play an enhanced role in value relevance when managers lose the ability to convey information via financial statement placement discretion. Specifically, we consider the setting of ASU 2011-05, which removed the option for firms to report...

This paper investigates the relation between debt valuation adjustments (DVAs) and top executive compensation in the banking industry. DVAs arise from changes in fair value of liabilities associated with changes in a firm’s own credit standing, and have become a significant income component...