دانلود رایگان مقاله انگلیسی رابطه بین کیفیت افشا و کیفیت گزارش - نشریه الزویر

Introduction

Cassell, Myers, and Seidel (2015, CMS) examine the relation between the transparency of disclosures about activity in the bad-debt allowance, inventory allowance, and deferred tax assets allowance accounts and accruals-based earnings management. The study finds that firms manipulate earnings through accruals to a smaller degree when they provide transparent disclosures about activity in these allowance accounts. The authors also find that the placement of such transparent disclosures, whether in a summary schedule presented after the financial statements and notes or spread throughout the notes to the financial statements, does not provide additional information about firms’ accruals-based earnings management. The findings suggest that users of financial reports may use firms’ disclosure behavior as a signal of firms’ reporting behavior.

Conclusion

CMS ask an interesting question about the relation between disclosure quality and reporting quality. To answer this question, the authors have painstakingly hand-collected a large set of data and provided preliminary evidence that a firm’s decision on how transparently it discloses activity in the bad-debt allowance, inventory allowance, and deferred tax assets allowance accounts can serve as a signal to investors of managers’ misuse of discretion in reporting these allowance accounts and in their overall accruals reporting. Despite some shortcomings, CMS make a nice contribution to the accounting literature. I expect more future research to explore the relation between disclosure quality and reporting quality.