In recent years, a large number of countries have made reporting under International Financial Reporting Standards (IFRS) mandatory. The capital-market effects of this change have been extensively studied, but their sources are not yet well understood and still heavily debated. This paper presents new evidence that aims to distinguish between several potential explanations for these capital-mar...

In a production economy with trade in financial markets motivated by the desire to share labor-income risk and to speculate, we show that speculation increases volatility of asset returns and investment growth, increases the equity risk premium, and reduces welfare. Regulatory measures, such as constraints on stock positions, borrowing constraints, and the Tobin tax have similar effects on fina...

Did regulatory reforms that lowered barriers to competition among U.S. banks increase or decrease the degree to which banks manage the information that they disclose to the public and regulators? We find that relaxing regulatory impediments to competition reduced discretionary loan loss provisioning and the frequency with which banks restate financial statements. The results suggest that compet...

The public sector has undergone a series of reforms, reforms that have had a great influence on the development of public accounting and reporting system. We consider that the most important issue that has resulted from these reforms refers to the introduction of consolidated financial reporting in the public sector. The public sector consolidated financial statements represent a challenging to...

M ost healthcare institutions have now presented at least one year's audited inancial information using the format and definitions required by the new audit and accounting guide, Audits of Providers of Health Care Services (American Institute of Certified Public Accountants [AICPA], NewYork City, 1990). The guide requires facilities to report charity care and allows them to report community ser...

We study the influence of financial frictions on the cyclical dynamics of producer prices. Empirical results show that the response of industry-specific PPI inflation to changes in aggregate financial conditions depends importantly on differences in the ease of access to external finance across industries: In industries in which firms face a high likelihood of financial constraints, inflation i...

This paper examines the readability of the chairman’s narratives, as determined by the Flesch score, of a Malaysian public listed company’s corporate reports from 1962 to 2009. It partially supports earlier studies which demonstrated that corporate reports were difficult to read, and had shown very negligible decrease in difficulty over time. Net profit to sales and readability was significantl...

This paper is about how liability provisions should be set when there is material uncertainty. Conventional accounting practice is deterministic. A stochastic approach is needed. Since a single figure is needed in general purpose financial statements, the provision should include the value of uncertainty. There is a conflict between the measurement of solvency and profitability. The best estima...

-------------------------------------------------------------------ABSTRACT---------------------------------------------------------------------Financial losses due to financial statement frauds (FSF) are increasing day by day in the world. The industry recognizes the problem and is just now starting to act. Although prevention is the best way to reduce frauds, fraudsters are adaptive and will ...

We examine the relation between corporate governance and firms' information environments. We use the passage of state antitakeover laws in the U.S. as a source of exogenous variation in an important governance mechanism to identify changes in firms' information environments. We find that information asymmetry and private information gathering decreased and that financial statement informativene...