.... Editor’s note: Accepted by Christopher S. Armstrong, under the Senior Editorship of Mary E. Barth. 18 11 2021 12 05 2023 15 05 2023 2023 aggressive reporting restatements returns compensation SEM We estimate a structural equations model (SEM) that links aggressive...

... as forewarning investors about estimate subjectivity, thus providing a moral license to report more aggressively. With a distant relationship, a CAM disclosure does not provide a moral license, but signals greater auditor scrutiny, which leads to less aggressive reporting. Our results inform regulators...

... and reporting conservatively to adhere to a standard. I find that identification with the source causes less aggressive reporting for an injunctive standard, but when a standard is descriptive, identification has no effect or an opposite effect. When identification with the source is low, descriptive standards...