We report the results of an experiment where management discloses in the audited financial statements an opportunistic firm-specific capital structure. This disclosure, required under current IAS 1 rules, is subjective and susceptible to management bias. In our study, if used by nonprofessional...

This study examines how a set of Canadian and German firms apply the quantitative capital disclosure requirements contained in IAS 1. We find significant inter-country differences in both the propensity to disclose a capital structure and in the form of the disclosure. Further, we find variation...

We report the results of an experiment where management discloses in the audited financial statements a firm-specific capital structure that is susceptible to manipulation (i.e., subjective). This disclosure is allowed under current IAS 1 rules. In our study, if used by nonprofessional investor...