Our recognition and disclosure model reveals that accounting expertise acquisition and three informational forces, the quality of the recognized amount, the quality of disclosed information, and the quality of information revealed by price, have offsetting and countervailing effects on market...

Our recognition and disclosure model reveals that price informativeness is determined by the interaction of the qualities of three information sources-the recognized amount, the disclosed information, and the information revealed by price-and accounting expertise acquisition. It also reveals...

To restore investors' confidence in the reliability of corporate financial disclosures, the Sarbanes-Oxley Act of 2002 mandated stricter regulations and arguably increased auditors' liability. In this paper, we analyze the effects of increased auditor liability on the audit failure rate, the...