Ball, Ray; Jayaraman, Sudarshan; Shivakumar, Lakshmanan - In: Journal of Accounting and Economics 53 (2012) 1, pp. 136-166
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...