... by an investor allocating capital across firms. Firms’ choices of a common method are strategic complements in attaining more comparable reports. As a result, multiple equilibria may exist. Specifically, an equilibrium in which firms use their local methods always exists. However, an equilibrium in which firms...

...Spencer B. Anderson ABSTRACT I use standard setters’ description of comparability to conceptualize two forms of incomparability in financial reporting. Using a laboratory experiment, I construct states of both comparability and incomparability and investigate investors’ capital allocation...

.... These findings indicate that financial information is more informative, and, thus, of higher quality, when disaggregated by standardized criteria that achieve comparability and match the information-processing strategies of capital market participants. Data Availability: Data are available from the sources...

... that clients from different countries have more (less) comparable accruals when they are audited by local audit firms from the same global network (different global networks). Furthermore, inferences are similar when we examine client accrual comparability around audit firm switches induced by the failure...

... that two companies audited by the same Big 4 auditor, subject to the same audit style, are more likely to have comparable earnings than two firms audited by two different Big 4 firms with different styles. By comparable we mean that two firms in the same industry and year will have a more similar accruals...