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The effects of financial reporting and disclosure on corporate investment: A review

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  • Roychowdhury, Sugata
  • Shroff, Nemit
  • Verdi, Rodrigo S.

Abstract

A fundamental question in accounting is whether and to what extent financial reporting facilitates the allocation of capital to the right investment projects. Over the last two decades, a large and growing body of literature has contributed to our understanding of whether and why financial reporting affects investment decision-making. We review the empirical literature on this topic, provide a framework to organize this literature, and highlight opportunities for future research.

Suggested Citation

  • Roychowdhury, Sugata & Shroff, Nemit & Verdi, Rodrigo S., 2019. "The effects of financial reporting and disclosure on corporate investment: A review," Journal of Accounting and Economics, Elsevier, vol. 68(2).
    • Handle: RePEc:eee:jaecon:v:68:y:2019:i:2:s0165410119300412
    DOI: 10.1016/j.jacceco.2019.101246
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