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The financial reporting environment: Review of the recent literature

Listed author(s):
  • Beyer, Anne
  • Cohen, Daniel A.
  • Lys, Thomas Z.
  • Walther, Beverly R.
Registered author(s):

    The corporate information environment develops endogenously as a consequence of information asymmetries and agency problems between investors, entrepreneurs, and managers. We review current research on the three main decisions that shape the corporate information environment in capital market settings: (1) managers' voluntary disclosure decisions, (2) disclosures mandated by regulators, and (3) reporting decisions by analysts. We conclude that, in the last ten years, research has generated several useful insights. Despite this progress, we call for researchers to consider interdependencies between the various decisions that shape the corporate information environment and suggest new and interesting issues for researchers to address.

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    Article provided by Elsevier in its journal Journal of Accounting and Economics.

    Volume (Year): 50 (2010)
    Issue (Month): 2-3 (December)
    Pages: 296-343

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    Handle: RePEc:eee:jaecon:v:50:y:2010:i:2-3:p:296-343
    Contact details of provider: Web page: http://www.elsevier.com/locate/jae

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