Corporate governance is the new buzz-word in corporate world these days. It is viewed as a moral duty. It involves promoting the compliance of law in letter and spirit and demonstrating ethical conduct. The relationship between corporate governance and financial performance has caught wide attention of researchers in the last decade. Numerous researches have been conducted in past to investigat...

Independence (in fact as well as in appearance) is widely thought to be necessary for the quality of audits, and audit quality is often equated with independence. Private incentives to demand (and supply) independent certification of financial statements are thought to be insufficient, thus the need to mandate independence through regulation. This study presents data from a field experiment on ...

This study analyzes the behavior of a representative sample of U.S. families in two measures of financial acumen in 1989-94. Budget acumen is success at paying bills on time and maintaining good relationships with creditors. Wealth acumen is achieving increases in family wealth over time. First, in univariate comparisons black families achieve lower levels of budget acumen in most of the measur...

Institutional efforts in the U.S. to develop a conceptual framework for business enterprises can be traced to the Paton and Littleton monograph in 1940 and later to the two Accounting Research Studies by Moonitz and Sprouse in 1962-1963. A committee of the American Accounting Association issued an influential report in which it advocated a “decision usefulness” approach in 1966, which was carri...

Embedded in canonical macroeconomic models is the assumption of frictionless financial markets, implying that the composition of borrowers’ balance sheets has no effect on their spending decision. As a result, these models have a difficult time accounting for the feedback effects between financial conditions and the real economy during periods of financial turmoil. Financial frictions—reflectin...

Investors, financial reporting policymakers, and accounting educators emphasize the importance of financial statement comparability. Accounting researchers have found it difficult to develop empirical measures of comparability that correspond to typical views of the construct. The measures used in recent research are removed from firms’ accounting treatments and are likely to be driven by econo...

This paper develops a simple business-cycle model in which financial shocks have large macroeconomic effects when private agents are gradually learning their economic environment. When agents update their beliefs about the unobserved process driving financial shocks to the leverage ratio, the responses of output and other aggregates under adaptive learning are significantly larger than under ra...

In 2008 all ECB publications feature a motif taken from the 10 banknote.

This study presents a theoretical model of the working paper review process within the financial statement audit. The model is based on the concepts of reliability engineering with auditors functioning as the main control components. Characteristics of the model are investigated using simulation and differential analysis. Our simulation results show that the performance of a combined review tea...

Research summary: We document the extent of fraudulent reporting among 467 private Chinese technology companies. Comparing the financial statements concurrently submitted to two different state agencies, we demonstrate a systematic gap in reported profit figures in the two sets of books. We find: (1) more than half the sampled companies report incentive-compatible, materially discrepant profit ...