"Discussion of "Critical accounting policy disclosures"/
Billings, Mary Brooke
"Discussion of "Critical accounting policy disclosures"/ created by Mary Brooke Billings - Journal of Accounting, Auditing and Finance Volume 26, number 1 .
Carolyn B. Levine and Michael J. Smith (2011) examine firms’ critical accounting policy (CAP) disclosures. With respect to motivation for disclosure, Levine and Smith (2011) document an increased likelihood of CAP disclosure for firms facing high ex ante litigation risk. Focusing on the informational value of disclosure, they find evidence consistent with CAP disclosure influencing investors’ valuation decisions. Although the paper provides a large sample analysis of a relatively new accounting disclosure practice, I raise some questions about what we can (and cannot) learn from their findings. In so doing, I highlight potential topics for future research.
0148558X
Critical accounting policy
Disclosure incentives
Earnings' quality
HF5601 JOU
"Discussion of "Critical accounting policy disclosures"/ created by Mary Brooke Billings - Journal of Accounting, Auditing and Finance Volume 26, number 1 .
Carolyn B. Levine and Michael J. Smith (2011) examine firms’ critical accounting policy (CAP) disclosures. With respect to motivation for disclosure, Levine and Smith (2011) document an increased likelihood of CAP disclosure for firms facing high ex ante litigation risk. Focusing on the informational value of disclosure, they find evidence consistent with CAP disclosure influencing investors’ valuation decisions. Although the paper provides a large sample analysis of a relatively new accounting disclosure practice, I raise some questions about what we can (and cannot) learn from their findings. In so doing, I highlight potential topics for future research.
0148558X
Critical accounting policy
Disclosure incentives
Earnings' quality
HF5601 JOU