SYNOPSIS: This essay is based on a presentation at the American Accounting Association Strategy Retreat in May 2011 assertion “Accounting research as of stagnant and lacking significant innovation that introduces fresh ideas insights into our scholarly discipline.” It poses question “How can accounting researchers become more innovative?” discusses why may have less innovative. also outlines some changes incentive structures editorial processes needed to achieve greater research. JEL...

Abstract We show that banks with high environmental, social, and governance (ESG) ratings issue fewer mortgages in poor localities—in number dollar amount—than low ESG ratings. This lending disparity happens at both the county census tract level, worsens disaster areas of severe hurricane strikes, is robust to alternative (including using only social (S) component), cannot be explained by banks’ differential deposit networks. find no difference mortgage default rates between high- low-ESG...

Auditors' incentives to be conservative are likely vary both cross-sectionally and over time based on their legal liability exposure. We predict that Big Eight (Six/Five) auditors more than non-Big Auditors. show the earnings reported by auditees of auditees, utilizing several measures from Basu (1997). The difference in conservatism between is higher periods high auditor exposure, consistent with being relatively when exposed greater liability.

We seek to characterize the evolutionary role played by transactional record that is foundation of modern accounting. theorize systematic recordkeeping crystallizes memory and, along with other institutions (e.g., law, weights, and measures), promotes trust necessary for large-scale human cooperation. Our theory yields two predictions: (1) permanent records emerge supplement when complex intertemporal exchange between strangers becomes more common (2) exchange-supporting co-evolve feed back...

SYNOPSIS: We develop the hypothesis that culturally evolved accounting principles will be ultimately explained by their consilience with how human brain has biologically to evaluate social and economic exchange. provide background on structure evolution of brain, measurement behavior during decision making, brain’s central role in building institutions. describe emergence modern argue primary function evaluating exchange is quantified information net benefits past exchanges. review evidence...

ABSTRACT We study nonofficer directors’ influence on the accounting conservatism of U.S. public firms. Between 1986 and 2002, all 50 states enacted laws that limited litigation risk but often left officer unchanged. find conditional decreased after staggered enactments laws, which we attribute to less director monitoring financial reporting in affected Conservatism fell when shareholder or debtholder power was high, consistent with major stakeholders moderating directors. verify our results...

We theorize that accounting systems affect analysts’ forecast accuracy through changes in earnings variability. argue the matching and historical cost principles reduce variability, hence, errors. also restricting choice of methods can result larger more informative disclosure environments should test whether variation these factors across countries explain bias accuracy. Our results indicate characteristics financial are complements, they

Abstract Intangibles are ideas or knowledge about the natural (physical and biological) socio‐cultural worlds that enable people to better accomplish their goals, both in primitive societies modern economies. include basic research technology improvements, as well organise exchange production, over time become inextricably embedded improved tangible assets. Accounting intangibles legally excludable subsets of economic intangibles, which turn cultural can be used create tradable goods...

We experimentally demonstrate a causal link between recordkeeping and reciprocal exchange. Recordkeeping improves memory of past interactions in complex exchange environment, which promotes reputation formation decision coordination. Economies with exhibit beneficially altered economic history where the risks exchanging strangers are substantially lessened. Our findings consistent prior assertions that extensive reciprocity requires sophisticated to store information on transactions. offer...

Over the last decade, there has been much empirical research on Chinese accounting conservatism. This started with Ball, Robin and Wu (2000) that was one of first papers to apply modern methods data. In this paper, I survey early conservatism provide background context for a discussion my dissertation Basu (1997). describe some lessons have learnt from unexpected success dissertation, review recent suggest few directions future (Chinese) research. Finally, how current origins (including...

ABSTRACT Accountants examine multiple indicators when assessing whether individual assets are impaired. Different predict cash flows over varying time horizons, and their importance varies with how far into the future expected to generate flows. We that earnings exhibits asymmetric timeliness respect indicators, including stock return, sales change, operating flow which differentially explain write-downs of current assets, long-lived tangible indefinite-lived goodwill. an interaction effect...

Abstract In a competitive information market, single source can only dominate other sources individually, not collectively. We explore whether earnings announcements constitute such dominant using Ball and Shivakumar's (2008) [How much new is there in earnings?, Journal of Accounting Research, 2008, 46(5), pp. 975–1016] R 2 metric: the proportion variation annual returns explained by four quarterly announcement returns. find that days' 11% – higher than corresponding days with dividend...