Response to the progress report of the SEC advisory committee on improvements to financial reporting (Release No. 33-8896; File No. 265-24)

Accounting Horizons

Volumn 22, Issue 4, 2008, Pages 471-494

  Wright, Arnold M ^a   Botosan, Christine A ^a   Colson, Robert H ^a  

^a NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 77249133595     PISSN: 08887993     EISSN: 15587975     Source Type: Journal    
DOI: 10.2308/acch.2008.22.4.471     Document Type: Article

References (110)

1. Accounting Education Change Commission AECC. 1990. Objectives of education for accountants: Position Statement No. 1. Issues in Accounting Education 5(2):307-312.
2. Albrecht, W. S., and R. Sack. 2000. Accounting Education: Charting the Course through a Perilous Future. Accounting Education Series. Sarasota, FL: American Accounting Association.
3. Amihud, Y., and H. Mendelson. 1986. Asset pricing and the bid-ask spread. Journal of Financial Economics 17: 223-249.
4. Amir, E., and A. Ziv. 1997. Recognition, disclosure, or delay: Timing the adoption of SFAS No. 106. Journal of Accounting Research 35: 61-81.
5. Armitage, S., and C. Marston. 2007. Corporate Disclosure and the Cost of Capital: The Views of Finance Directors. London, England: Institute of Chartered Accountants in England and Wales.
6. Asare, S. K., and L. S. McDaniel. 1996. The effects of familiarity with the preparer and task complexity on effectiveness of the audit review process. The Accounting Review 71 (2): 139-159.
7. Baginski, S. P., J. M. Hassell, and M. D. Kimbrough. 2002. The effect of legal environment on voluntary disclosure: Evidence from management earnings forecasts issued in U.S. and Canadian markets. The Accounting Review 77: 25-50.
8. Barry, C., and S. Brown. 1985. Differential information and security market equilibrium. Journal of Financial and Quantitative Analysis 20: 407-422.
9. Barth, M. E., and K. Schipper. 2008. Financial reporting transparency. Journal of Accounting, Auditing & Finance (Spring): 173-190.
10. Bergstresser, D., D. Mihir, and J. Rauh. 2006. Earnings manipulation, pension assumptions, and managerial investment decisions. Quarterly Journal of Economics 23 (February): 157-195.
11. Bernard, V. L. 1989. Capital Markets Research in Accounting During the 1980s: A Critical Review. The State of Accounting Research As We Enter the 1990s. Chicago, IL: Board of Trustees of the University of Illinois.
12. Bonner, S. E., and B. L. Lewis. 1990. Determinants of auditor expertise. Journal of Accounting Research 28 (Supplement): 1-20.
13. Bonner, S. E., and B. L. Lewis, and P. Walker. 1994. The effects of instruction and experience on the acquisition of auditing knowledge. The Accounting Review 69 (1): 157-178.
14. Botosan, C. 1997. Disclosure level and the cost of equity capital. The Accounting Review 72: 323-349.
15. Botosan, C., and M. Plumlee. 2002. A re-examination of disclosure level and the expected cost of equity capital. Journal of Accounting Research 40: 21-40.
16. Botosan, C., and M. Plumlee, and M. Stanford. 2005. Managers' motives to withhold segment disclosures and the effect of SFAS No. 131 on analysts' information environment. The Accounting Review 80: 751-771.
17. Botosan, C., and M. Plumlee, and M. Stanford. 2006. Disclosure and the cost of capital: What do we know? International Accounting Policy Forum. Accounting and Business Research: 31-40.
18. Callahan, C., C. Lee, and T. Yohn. 1997. Accounting information and bid-ask spreads. Accounting Horizons 11 (4): 50-60.
19. Campbell, D. J. 1988. Task complexity: A review and analysis. Academy of Management Review 13 (January): 40-52.
20. Chiyachantana, C., C. Jiang, N. Taechapiroontong, and R. Wood. 2004. The impact of regulation fair disclosure on information asymmetry and trading: An intraday analysis. Financial Review 39: 549-577.
21. Clarkson, P., J. Guedes, and R. Thompson. 1996. On the diversification, observability, and measurement of estimation risk. Journal of Financial and Quantitative Analysis 31: 69-84.
22. Coles, J., and U. Loewenstein. 1988. Equilibrium pricing and portfolio composition in the presence of uncertain parameters. Journal of Financial Economics 22: 279-303.
23. Coles, J., and U. Loewenstein and J. Suay. 1995. On equilibrium pricing under parameter uncertainty. Journal of Financial and Quantitative Analysis 30: 347-364.
24. Copeland, T., and D. Galai. 1983. Information effects on the bid-ask spread. The Journal of Finance 38: 1457-1469.
25. Darcy, D. P., C. F. Kemerer, S. A. Slaughter, and J. E. Tomayko. 2005. The structural complexity of software: An experimental test. IEEE Transactions on Software Engineering 31 (11): 982-995.
26. DeAngelo, H., L. DeAngelo, and D. J. Skinner. 1994. Accounting choice in troubled companies. Journal of Accounting and Economics 17: 113-143.
27. Demski, J. 1973. The general impossibility of normative accounting standards. The Accounting Review 48 (4): 718-723.
28. Diamond, D. M. 1985. Optimal release of information by firms. The Journal of Finance 40: 1071-1094.
29. Diamond, D. M., and R. E. Verrecchia. 1991. Disclosure, liquidity and the cost of capital. The Journal of Finance 46: 1325-1360.
30. Dye, R. A., and Diamond, D. M., and R. E. Verrecchia. 1995. Discretion vs. uniformity: Choices among GAAP. The Accounting Review 70 (July): 389-415.
31. Easley, D., and M. O'Hara. 2004. Information and the cost of capital. The Journal of Finance 59 4: 1553-1584.
32. Feltham, G., F. Gigler, and J. Hughes. 1992. The effects of line-of-business reporting on competition in oligopoly settings. Contemporary Accounting Research 9: 1-23.
33. Field, L., M. Lowry, and S. Shu. 2005. Does disclosure deter or trigger litigation? Journal of Accounting and Economics 39: 487-507.
34. Fields, R. D., T. Z. Lys, and L. Vincent. 2001. Empirical research on accounting choice. Journal of Accounting and Economics 31: 255-307.
35. Francis, J., D. Philbrick, and K. Schipper. 1994. Shareholder litigation and corporate disclosures. Journal of Accounting Research 32: 137-164.
36. Francis, J., D. Philbrick, and K. Schipper. 2001. Discussion of empirical research on accounting choice. Journal of Accounting and Economics 31: 309-319.
37. Francis, J., D. Philbrick, and K. Schipper, R. LaFond, P. Olsson, and K. Schipper. 2004. Costs of equity and earnings attributes. The Accounting Review 79: 967-1010.
38. Frankel, R., M. McNichols, and P. Wilson. 1995. Discretionary disclosure and external financing. The Accounting Review 70: 135-150.
39. Gal-Or, E. 1985. Information sharing in oligopoly settings. Econometrica 53 (2): 329-343.
40. Gietzmann, M., and M. Trombetta. 2003. Disclosure interactions: Accounting policy choice and voluntary disclosure effects on the cost of raising capital. Accounting and Business Research 33 (3): 187-205.
41. Gal-Or, E., and J. Ireland. 2005. Cost of capital, strategic disclosures, and accounting choice. Journal of Business Finance & Accounting 32: 599-634.
42. Gleason, C. A., N. Thorne Jenkins, and W. B. Johnson. 2008. The contagion effects of accounting restatements. The Accounting Review 83: 83-110.
43. Graham, J. R., C. R. Harvey, and S. Rajgopal. 2005. The economic implications of corporate financial reporting. Journal of Accounting and Economics 40: 3-73.
44. Grant Thornton, LLP. 2008. Survey of Senior Financial Executives. Available at: http://www.gt.com/portal/site/gtcom/menuitem.550794734a67d883a5f2ba40633841ca/?vgnextoid=2f584d2ab52f9110VgnVCM1000003a8314acRCRD&vgnextchannel=f51ecbbdad9c4010VgnVCM100000368314acRCRD
45. Greenstein, M., and H. Sami. 1994. The impact of the SEC's segment disclosure requirement on bid-ask spreads. The Accounting Review 69: 179-199.
46. Habib, A. 2006. Information risk and the cost of capital: Review of the empirical literature. Journal of Accounting Literature 25: 127-168.
47. Hail, L. 2002. The impact of voluntary corporate disclosures on the ex-ante cost of capital for Swiss firms. European Accounting Review 11 (4): 741-773.
48. Hand, J. R., and T. Skantz. 1997. The economic determinants of accounting choices: The unique case of equity carve-outs under SAB 51. Journal of Accounting and Economics 24: 175-203.
49. Harris, M. 1998. The association between competition and managers' business segment reporting decisions. Journal of Accounting Research 36: 111-128.
50. Hawkins, S. A., and R. Hastie. 1990. Hindsight: Biased judgments of past events after the outcomes are known. Psychological Bulletin 107 (3): 311-327.
51. Hayes, R., and R. Lundholm. 1996. Segment reporting to the capital market in the presence of a competitor. Journal of Accounting Research 34: 261-279.
52. Healy, P., A. Hutton, and K. Palepu. 1999. Stock performance and intermediation changes surrounding sustained increases in disclosure. Contemporary Accounting Research 16: 485-520.
53. Healy, P., A. Hutton, and K. Palepu, and K. Palepu. 2001. Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics 31: 405-440.
54. Hodge, F. D. 2001. Hyperlinking unaudited information to audited financial statements: Effects on investor judgments. The Accounting Review 76 (October): 675-691.
55. Hodge, F. D., J. J. Kennedy, and L. A. Maines. 2004. Does search-facilitating technology improve the transparency of financial reporting? The Accounting Review 79 (July): 687-703.
56. Holthausen, R. W., and R. Leftwich. 1983. The economic consequences of accounting choice: Implications of costly contracting and monitoring. Journal of Accounting and Economics 5 (2): 77-117.
57. Holthausen, R. W., and R. Leftwich. 1990. Accounting method choice, opportunistic behavior, efficient contracting, and information perspectives. Journal of Accounting and Economics 12: 207-218.
58. Hsee, C. 1995. Elastic justification: How tempting but task-irrelevant factors influence decisions. Organizational Behavior and Human Decision Processes 62 (June): 330-337.
59. Johnson, M., R. Kasznik, and K. Nelson. 2001. The impact of securities litigation reform on the disclosure of forward-looking information by high technology firms. Journal of Accounting Research 39: 297-327.
60. Kasznik, R., and B. Lev. 1995. To warn or not to warn: Management disclosures in the face of an earnings surprise. The Accounting Review 70: 113-134.
61. Kim, O., and R. E. Verrecchia. 1991. Trading volume and price reactions to public announcements. Journal of Accounting Research 29: 302-321.
62. Kim, O., and R. E. Verrecchia. 1994. Market liquidity and volume around earnings announcements. Journal of Accounting and Economics 17: 41-67.
63. Kirby, A. 1988. Trade associations as information exchange mechanisms. The Rand Journal of Economics 19: 138-146.
64. Klein, R., and V. Bawa. 1976. The effect of estimation risk on optimal portfolio choice. Journal of Financial Economics 3 (3): 215-231.
65. Lambert, R., C. Leuz, and R. E. Verrecchia. 2007. Accounting information, disclosure, and the cost of capital. Journal of Accounting Research 45 (2): 385-420.
66. Klein, R., and V. Bawa. 2008. Information asymmetry, information precision, and the cost of capital. Working paper, University of Pennsylvania.
67. Lang, M., and R. Lundholm. 2000. Voluntary disclosure and equity offerings: Reducing information asymmetry or hyping the stock? Contemporary Accounting Research 17: 623-662.
68. Lassila, K. S., and J. C. Brancheau. 1999. Adoption and utilization of commercial software packages: Exploring utilization equlibria, transitions, triggers, and tracks. Journal of Management Information Systems 16 (2): 63-90.
69. Leuz, C., and R. E. Verrecchia. 2000. The economic consequences of increased disclosure. Journal of Accounting Research 38: 91-124.
70. Leuz, C., and R. E. Verrecchia. 2003. IAS Versus U.S. GAAP: Information asymmetry-based evidence from Germany's new market. Journal of Accounting Research 41 (3): 445-471.
71. Leuz, C., and R. E. Verrecchia. 2004. Proprietary versus non-proprietary disclosures: Evidence from Germany. In The Economics and Politics of Accounting, edited by Leuz, C., D. Pfaff, and A. Hopwood. Oxford, U.K.: Oxford University Press, 164-197.
72. Leuz, C., and R. E. Verrecchia, and P. Wysocki. 2008. Economic consequences of financial reporting and disclosure regulation: A review and suggestions for future research. Working paper, University of Chicago.
73. Lev, B., and J. A. Ohlson. 1982. Market-based empirical research in accounting: A review, interpretation, and extension. Journal of Accounting Research 20: 249-322.
74. Libby, R., and H-T. Tan. 1994. Modeling the determinants of audit expertise. Accounting, Organizations and Society 19 (8): 701-716.
75. Lys, T. 1984. Mandated accounting changes and debt covenants: The case of oil and gas accounting. Journal of Accounting and Economics 6: 39-66.
76. Malmquist, D. H. 1990. Efficient contracting and the choice of accounting method in the oil and gas industry. Journal of Accounting and Economics 12: 17-206.
77. Mikhail, M., B. Walther, and R. Willis. 2004. Earnings surprises and the cost of equity capital. Journal of Accounting, Auditing & Finance 19 (4): 491-514.
78. Miller, D., and J. Puthenpurackal. 2002. The cost, wealth effects, and determinants of international capital raising: Evidence from public Yankee bonds. Journal of Financial Intermediation 11: 455-485.
79. Mohd, E. 2005. Accounting for software development costs and information asymmetry. The Accounting Review 80 (4): 1211-1231.
80. Nelson, M. W. 2003. Behavioral evidence on the effects of principlesand rules-based standards. Accounting Horizons 17 (March): 91-104.
81. Nelson, M. W., and W. B. Taylor. 2007. Information pursuit in financial statement analysis: Effects of choice, effort, and reconciliation. The Accounting Review 82 (October): 731-758.
82. Newell, S., J. A. Swan, and R. D. Galliers. 2000. A knowledge-focused perspective on the diffusion and adoption of complex information technologies: The BPR example. Information Systems Journal 10 (3): 239-259.
83. Palmrose, Z-V., V. J. Richardson, and S. Scholz. 2004. Determinants of the market reaction to restatements. Journal of Accounting and Economics 37 (1): 59-89.
84. Palmrose, Z-V., V. J. Richardson, and S. Scholz, and S. Scholz. 2004. The circumstances and legal consequences of non-GAAP reporting: Evidence from restatements. Contemporary Accounting Research 21 (Spring): 139-180.
85. Picconi, M. 2006. The perils of pensions: Does pension accounting lead investors and analysts astray? The Accounting Review 81 (4): 925-995.
86. Plumlee, M., and T. Lombardi Yohn. 2008a. Analysis of the underlying causes of restatements. Working paper, University of Utah and University of Indiana.
87. Plumlee, M., and T. Lombardi Yohn. 2008b. Restatements: Investors' responses and firms' reporting choices. Working paper, University of Utah and University of Indiana.
88. Poshakwale, S., and J. Courtis. 2005. Disclosure level and cost of equity capital: Evidence from the banking industry. Managerial and Decision Economics 26: 431-444.
89. Public Company Accounting Oversight Board PCAOB. 2008. PCAOB Standards and Related Rules. New York, NY: American Institute of Public Accountants.
90. Richardson, A., and M. Welker. 2001. Social disclosure, financial disclosure and the cost of equity capital. Accounting, Organizations and Society 26: 597-616.
91. Roychowdhury, S. 2006. Earnings management through real activities manipulation. Journal of Accounting and Economics 42 (3): 335-370.
92. Schkade, D. A., and L. M. Kilboume. 1991. Expectation-outcome consistency and hindsight bias. Organizational Behavior and Human Decision Processes 49: 105-123.
93. Scholz, S. 2008. The Changing Nature and Consequences of Financial Restatements: 1997-2006. U.S. Department of the Treasury April. Washington, D.C.: Government Printing Office.
94. Schweitzer, M., and C. Hsee. 2002. Stretching the truth: Elastic justification and motivated communication of uncertain information. Journal of Risk and Uncertainty 25 September: 185-201.
95. Sengupta, P. 1998. Corporate disclosure quality and the cost of debt. The Accounting Review 73 (4): 459-474.
96. Shleifer, A., and D. Wolfenzon. 2002. Investor protection and equity markets. Journal of Financial Economics 66: 3-27.
97. Skinner, D. 1994. Why firms voluntarily disclose bad news. Journal of Accounting Research 32: 38-60.
98. Skinner, D. 1997. Earnings disclosure and stockholder lawsuits. Journal of Accounting and Economics 23: 249-282.
99. Suedfeld, P., and R. Hagen. 1966. Measurement of information complexity: Conceptual structure and information pattern as factors in information processing. Journal of Personality and Social Psychology 4 (2): 233-236.
100. Tan, H-T., and A. Kao. 1999. Accountability effects on auditors' performance: The influence of knowledge, problem-solving ability, and task complexity. Journal of Accounting Research 37 (1): 209-223.
101. Tan, H-T., and A. Kao, T. B-P. Ng, and B. W-Y. Mak. 2002. The effects of task complexity on auditors' performance: The impact of accountability and knowledge. Auditing: A Journal of Practice & Theory 21 (2): 81-95.
102. Verrecchia, R. E. 1983. Discretionary disclosure. Journal of Accounting and Economics 5: 179-194.
103. Verrecchia, R. E. 2001. Essays on disclosure. Journal of Accounting and Economics 32: 97-180.
104. Vives, X. 1984. Duopoly information equilibrium: Cornot and Bertrand. Journal of Economic Theory 34: 71-94.
105. Wagenhofer, A. 1990. Voluntary disclosure with a strategic opponent. Journal of Accounting and Economics 12: 341-364.
106. Waguespack, L. J., and S. Badlani. 1987. Software complexity measurement: An introduction and annotated bibliography. ACM SIGSOFT 12: 52-71.
107. Watts, R. L., and J. L. Zimmerman. 1990. Positive accounting theory: A ten year perspective. The Accounting Review 65 (1): 131-256.
108. Welker, M. 1995. Disclosure policy, information asymmetry, and liquidity in equity markets. Contemporary Accounting Research 12: 801-827.
109. Wood, R. E. 1986. Task complexity: Definition of the construct. Organizational Behavior and Human Decision Processes 37 (February): 60-82.
110. Zuse, H., and P. Bollman. 1989. Software metrics: Using measurement theory to describe the properties and scales of static software complexity measures. SIGPLAN Notices 24: 23-33.