Search All

Articles

1. The Benefits of Financial Statement Comparability 2011

   https://ncsu.summon.serialssolutions.com/2.0.0/link/0/eLvHCXMwrV1ba9swFD6MBsZedh_z2gUPxt68-CLJEpRCGuaVwtYxdnsTsiyR7tKEJC3tv985cmxi2MMYA8sYWzb20TnSJ_nTJ4CXeS0zxqVKBLN5gu11mqgyZYkocJ9yq2zTDAdz4KSbC9PqQ_QDbhQZob6mADf1erLDxGEl0ebVt60OJ801f01oMsNGh5DS2WxHfbddmJD4CBIhw5DS88cHDdqpEZn8uqMsDsDoaOWWzg6hbWibqnuw6b4qUFJoIYRdbv4k6CEGEYxO-_F_WOA-3N1i2XjaOt8DuOUuHsLtjkr_CCT6YHyMlak_36zjhY8P50dVp_ARB5hLY5OHk_lRPGtVyANV9-YxfK7efJqdJNuVGhIr0J6JEN42xrBMkU_wJjWlrBGbWCaov2VzSf0U712RMZ9THdGUprCC58zyGmHDU4it94wZzF0Yz4xAJ3J50TSlk7mR3NURZF2B6GWrxKF3ezAl12QLTbbQwRb6OoJXoeT6G8zqBzHZMO_X9281-yIUU6dCH0fwJBRtnzHHrp6SSkSw35W13kb3WkvEzLTxCF70VzEs6V-LuXCLyzUx50jYp5RpBLPgIv2j65_m-4Iml-krXRimcHeDKbx3Yc7pHKYlJqm4VkWm55tfEYjgCn_96fr0bPoRj5796437cKcdPyc-3QHsbVaX7jnskfeOQ3SNYTStqg_vxmGdiN_1RiGm

   DE FRANCO, GUS; KOTHARI, S.P.; VERDI, RODRIGO S.

   Journal Of Accounting Research, Vol. 49, Issue 4, pp. 895 - 931.

   Investors, regulators, academics, and researchers all emphasize the importance of financial statement comparability. However, an empirical construct of comparability is typically not specified. In ... Read more

   Investors, regulators, academics, and researchers all emphasize the importance of financial statement comparability. However, an empirical construct of comparability is typically not specified. In addition, little evidence exists on the benefits of comparability to users. This study attempts to fill these gaps by developing a measure of financial statement comparability. Empirically, this measure is positively related to analyst following and forecast accuracy, and negatively related to analysts' dispersion in earnings forecasts. These results suggest that financial statement comparability lowers the cost of acquiring information, and increases the overall quantity and quality of information available to analysts about the firm. Read less

   Journal Article  |  Full Text Online

2. Guiding through the Fog: Financial statement complexity and voluntary disclosure 2016

   https://ncsu.summon.serialssolutions.com/2.0.0/link/0/eLvHCXMwnV1dS8MwFL24DcQXv8H5MfLga7YsTbtUxmB-1Ingk-KLULI0cQ7ZZGyg_96btGUqQ9CXlj6ktDeh99z0nHMBTvlQtkUoYxoJzSnma0bjDhM0CvDIQh3rLPu-mQOs1ML8_IXvqVhjpTUWY46IFTVzg8kK1DD3RFhu1fo3t4O7pRaS-25pTqVDBY5fqnZW32h1PsrJkD7HJFvwVD6dp5a4hgZfOfYt72vozSxKD8e_vMk2bBbYk_TzxbIDa2ayC-sl9X0PHq8XLy6VkaJ5D54NSabPZ6Q76iWlNQfxGiS3qdhtjXrEc9LNO4J5oiYZcV-7yVzNPojT-75O3QbkPjwkV_cXA1o0XqAa8cmcCt1BlGRFHCnOLdNZjLBCM9lRViJEYRarRsulsSwLQmGdRX7bxkZHrh4J2TA4AKKtFUJhsRUoK1SEa8LwIMs6RnIlQzOsQ7OMe_qWG2ukJeNsnBZxSl2cUhY75l0dZDk7aYEO8qyfYph_H3r4_6FHsOGucvXhMVTns4U5gaqb-0ax9BpQSS7PPwEkptkS

   Guay, Wayne; Samuels, Delphine; Taylor, Daniel

   Journal Of Accounting & Economics, Vol. 62, Issue 2-3, pp. 234 - 269.

   A growing literature documents that complex financial statements negatively affect the information environment. In this paper, we examine whether managers use voluntary disclosure to mitigate these... Read more

   A growing literature documents that complex financial statements negatively affect the information environment. In this paper, we examine whether managers use voluntary disclosure to mitigate these negative effects. Employing cross-sectional and within-firm designs, we find a robust positive relation between financial statement complexity and voluntary disclosure. This relation is stronger when liquidity decreases around the filing of the financial statements, is stronger when firms have more outside monitors, and is weaker when firms have poor performance and greater earnings management. We also examine the relation between financial statement complexity and voluntary disclosure using two quasi-natural experiments. Employing a generalized difference-in-differences design, we find firms affected by the adoption of complex accounting standards (e.g., SFAS 133 and SFAS 157) increase their voluntary disclosure to a greater extent than unaffected firms. Collectively, these findings suggest managers use voluntary disclosure to mitigate the negative effects of complex financial statements on the information environment. Read less

   Journal Article  |  Full Text Online

3. Financial statement errors: evidence from the distributional properties of financial statement... 2015

   https://ncsu.summon.serialssolutions.com/2.0.0/link/0/eLvHCXMwlV3NS8MwFH-4DcSL3-B0jhw8KXFtPtpMxmCKQz3oxeHHpXRJykDYRjtB9tebpO0-QA-75NL2QfNe8r5_D-CCDIXPuGjjgEmCjb72cDv0GA6oWT0u21Kp9WAOkEXoYvx1XWYk3UW97HWzXZ_G8-XY-OAUzytQ475xwm13-OBpkTmwUuacLGHcooDTMpP5F4l1XbQ0MFdzorRQNf29fJ5q5hAKJz-2CWmt1L7l4A0dpsUKlOMGP7QPu4URinq51BzAlh4fwnZZA38Es86o2y-hOJDrObJBxE5r1EU6TSdpdoN0MY4U2QYVZMxIpCwGbzE-y3w2tWH-1OK1okmCDMXkH4r5UJLsGAb9-9e7B1yMZ8CScW-GJRWCccaMgWkOPgk9TXQ8ZIEndeJpC1sfUOkrqWIhExFzSfwhUw6w0Ld3Cz0BJJOEsdi4ZDROWBwYydGEKhVqQWLB9bAOlyWHomkOvxEtgZbtBkZmAyO7gdG8Do2Sh1FxErPID6khb4zCsA5XJSNWHv9H7HSjt89gh1hOujqXBlRn6bc-h6qVjSZUwrcPu77fNp2sNqHWe358-fwFT9Hlew

   Amiram, Dan; Bozanic, Zahn; Rouen, Ethan

   Review Of Accounting Studies, Vol. 20, Issue 4, pp. 1540 - 1593.

   Motivated by methods used to evaluate the quality of data, we create a novel firm-year measure to estimate the level of error in financial statements. The measure, which has several conceptual and ... Read more

   Motivated by methods used to evaluate the quality of data, we create a novel firm-year measure to estimate the level of error in financial statements. The measure, which has several conceptual and statistical advantages over available alternatives, assesses the extent to which features of the distribution of a firm’s financial statement numbers diverge from a theoretical distribution posited by Benford’s Law. After providing intuition for the theory underlying the measure, we use numerical methods to demonstrate that certain error types in financial statement numbers increase the deviation from the theoretical distribution. We corroborate the numerical analysis with simulation analysis that reveals that the introduction of errors to reported revenue also increases the deviation. We then provide empirical evidence that the measure captures financial statement data quality. We first show the measure’s association with commonly used measures of accruals-based earnings management and earnings manipulation. Next, we demonstrate that (1) restated financial statements more closely conform to Benford’s Law than the misstated versions in the same firm-year and (2) as divergence from Benford’s Law increases, earnings persistence decreases. Finally, we show that our measure predicts material misstatements as identified by SEC Accounting and Auditing Enforcement Releases and can be used as a leading indicator to identify misstatements. Read less

   Journal Article  |  Full Text Online

See all 189,673 article results