Complexity of financial reporting standards and accounting expertise

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

This study tests whether firms seek to mitigate the adverse effects of Financial Reporting Complexity (FRC) by investing in accounting expertise. We develop a measure of FRC based on the complexity of accounting standards that govern annual disclosures. We find that FRC is positively related to the accounting expertise on a firm's board of directors and audit committee. We also find that accounting expertise mitigates the relation between FRC and negative reporting outcomes. Collectively, this study increases our understanding of the actions firms take to mitigate the negative consequences of FRC, and the role of accounting expertise in this setting.

Original languageEnglish (US)
JournalJournal of Accounting and Economics
DOIs
StateAccepted/In press - Jan 1 2018

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Expertise
Financial reporting
Investing
Audit committee
Disclosure
Board of directors
Accounting standards

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

Cite this

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