.... We also find motivational optimism influences firms’ financial reporting and is associated with an increased incidence of financial misreporting. Our results are consistent with the psychology theory of motivated reasoning, which emphasizes the distortive effects of preferences on beliefs...

...Messod D. Beneish; David B. Farber; Matthew Glendening; Kenneth W. Shaw ABSTRACT This study examines the incremental predictive power of aggregate measures of financial misreporting for recession and real gross domestic product (GDP) growth. We draw on prior research suggesting that misreporting...

... can be accessed by clicking the link in Appendix B. Editor's note: Accepted by Gregory S. Miller, under the Senior Editorship of Mark L. DeFond. 10 2016 5 2019 2020 CEO behavioral integrity audit fees financial misreporting corporate culture Somebody once said...

...Jaron H. Wilde ABSTRACT U.S. laws provide explicit whistleblower protections and direct regulators to adopt ambitious programs to reward whistleblowing. However, there is limited evidence on whether employee whistleblowing deters financial misreporting and tax aggressiveness. Using a sample...

...Po-Chang Chen ABSTRACT This study investigates whether banks respond to financial misreporting as the borrowing firms release misstated financial reports, i.e., in the misreporting period. Drawing upon finance theory that recognizes banks' superior information access and processing abilities...

...Valerie Li ABSTRACT Beatty, Liao, and Wu (2013) document that financial misreporting by prominent firms distorts peer firms' capital investment decisions. Using a large sample of firms subject to SEC and DOJ enforcement actions for accounting misstatements, I establish three important...