Research Question - What are the impacts of digital transformation of accounting practices and behavior following the COVID-19 pandemic? Motivation - The outbreak of the health crisis linked to COVID-19 pandemic has turned massively the companies to adopt digital platforms for accounting...

Intellectual capital — broadly defined to include nonphysical sources of value such as patents and copyrights, computer software, organizational processes and know-how — has a long history of being undervalued and excluded from measures of economic productivity and wealth. In recent years,...

Ensuring compliance of sustainability reports, especially Environmental, Social, and Governance (ESG) reporting, with the EU Taxonomy is essential in the European Union. In parallel, a significant transformation of Artificial Intelligence (AI) can be observed, shifting from task-specific models...

Reporting research and development together implies their allocation provides limited insight to investors. We construct and corroborate unique measures of development and research to evaluate this aggregation. These measures combined correlate with reported R&D expenditures at 99% (industry)...

Auditors increasingly employ technologies to improve audit quality. Using a design science approach, we examine whether using drones and automated counting software can improve audit quality and thereby improve financial reporting. We assess three dimensions of audit quality—efficiency,...

In this paper, we analyze the real effect of financial statement tax disclosures on corporate innovation activities. In 2007, the FASB enacted FIN 48, which mandates the separate and more detailed disclosure of reserves for unrecognized tax benefits (UTBs). Using patent applications as a measure...

We investigate the effect of patent disclosures on corporate innovation. Using the American Inventor's Protection Act (AIPA) as a shock that increased patent disclosures, we find an increase in innovation for firms whose rivals reveal more information after the AIPA and a decrease in innovation...

We examine the spillover effect of public firm innovation disclosures on the patent trading market. Relative to equity markets, the patent market is decentralized and rife with information frictions, yet it serves as an important mechanism through which innovations reallocate to the most...

Audit firms are investing billions of dollars to develop artificial intelligence (AI) systems that will help auditors execute challenging tasks (e.g., evaluating complex estimates). Although firms assume AI will enhance audit quality, a growing body of research documents that individuals often...

This paper examines the real effects of financial information dissemination on innovation. Broader dissemination of corporate disclosures can reduce the uncertainty associated with the expected value of R&D investments and increase clarity about the profitability of the underlying innovation to...