This paper reviews the empirical methods used in the accounting literature to draw causal
inferences. Recent years have seen a burgeoning growth in the use of methods that seek to …

The use of evidence and economic analysis in policymaking is on the rise, and accounting
standard setting and financial regulation are no exception. This article discusses the …

Natural language is a key form of business communication. Textual analysis is the
application of natural language processing (NLP) to textual data for automated information …

Using the staggered adoption of universal demand (UD) laws in the United States, we study
the effect of shareholder litigation risk on corporate disclosure. We find that disclosure …

This study shows that less readable 10‐K reports are associated with higher stock price
crash risk. The results are consistent with the argument that managers can successfully hide …

During 2005 to 2007, the SEC ordered a pilot program in which one‐third of the Russell
3000 index were arbitrarily chosen as pilot stocks and exempted from short‐sale price tests …

This paper examines the approaches accounting researchers adopt to draw causal
inferences using observational (or nonexperimental) data. The vast majority of accounting …

This study exploits the staggered adoption of the inevitable disclosure doctrine (IDD) by US
state courts as an exogenous shock that generates variations in the proprietary costs of …

Prior studies provide conflicting evidence as to whether managers have a general tendency
to disclose or withhold bad news. A key challenge for this literature is that researchers …

Abstract Research Summary To examine whether firms use corporate social responsibility
(CSR) to insure against stock price risk, we exploit an exogenous shock in stock price risk …