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作者：Michels, Jeremy
作者单位：University of Pennsylvania
摘要：Standard setters explicitly state that disclosure should not substitute for recognition in financial reports. Consistent with this directive, prior research shows that investors find recognized values more pertinent than disclosed values. However, it remains unclear whether reporting items are recognized because they are more relevant for investing decisions, or whether requiring recognition itself prompts differing behavior on the part of firms and investors. Using the setting of subsequent e...
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作者：Kachelmeier, Steven J.; Van Landuyt, Ben W.
作者单位：University of Texas System; University of Texas Austin; University of Arizona
摘要：We design an incentivized experiment to test whether measurement uncertainty elevates the risk that social bonds between auditors and reporters compromise audit adjustments. Results indicate that, when audit evidence is characterized by some residual uncertainty, the adjustments our auditor-participants require are sensitive to whether auditors have an opportunity to form a modest but friendly social bond with reporters. In contrast, although auditors do not adjust fully even when misstatement...
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作者：Christensen, Hans B.; Nikovaev, Valeri V.
作者单位：University of Chicago
摘要：We explore revealed preferences for the contractual treatment of changes to GAAP in a large sample of private credit agreements issued by publicly held U.S. firms. We document a significant time-trend toward excluding GAAP changes from the determination of covenant compliance over the period from 1994 to 2012. This trend is positively associated with proxies for standard setters' shift in focus toward relevance and international accounting harmonization. At the firm level, borrowers facing hig...
