... judgments of distortion’s acceptability largely reflect assessments of how harmful and norm-violating the distortion is. Judgments of operating distortion primarily reflect assessments of harm, whereas judgments of reporting distortion primarily reflect assessments of norm violation. These results...

... model disclosure efficiency managers' real operating decisions operating distortion The Public Company Accounting Oversight Board ( PCAOB 2017 ) passed a standard that requires auditors to disclose critical audit matters (CAMs), defined as “matters that involved especially challenging...