Strategic Accounting Choice and the Effects of Alternative Financial Reporting Requirements

• DOI: 10.2307/2490826
• Publication Date: 2006-06-18T03:12:52Z
• Authors: Ronald A. Dye
• Keywords: Voluntary disclosure

In this paper, I evaluate the effects of mandatory changes in accounting standards on firms' disclosure decisions. Several issues are addressed, including relation between reports and voluntary disclosures, imposing consistency choice, consequences increasing discretion procedures, implications requiring firms to issue more detailed reports. The analysis each these depends critically firm's motivation for choosing among financial reporting techniques. Throughout assume that a choice requirements is influenced by how alters its ability protect proprietary information. Since not common assumption, some comment appropriateness warranted. One limitations most discussions procedures give little attention incentives disclose information voluntarily. This results Catch-22. If have no withhold their information, then analyses amount produced various moot, since any supplied