Managerial Ability and Financial Statement Comparability

This study examines the relationship between managerial ability and financial statement comparability. We find that accounting comparability is associated with managerial ability. Specifically, firm-pairs by industry-year with similar managerial ability are associated with more comparable financial statements. We also find that firm-pairs with similarly low-level ability managers are associated with more comparable earnings than firm-pairs with similarly high-level ability managers. Overall, the results suggest that managers can impact the comparability of earnings and that less able managers are associated with more comparable financial statements

Principles-Based Accounting Standards and Corporate Governance Considerations

Objectives: This paper examines the implications of principles-based versus rules-based accounting standards, specifically as related to corporate governance. Prior Work: The debate over the benefits and consequences of principles-based versus rules-based accounting standards has ensued for decades. However, comparing the approaches in a real-life, practical setting has proved challenging. Principles-based standards require increased managerial judgement, and accordingly, effective oversight is required by those responsible for corporate governance. Approach: This paper examines corporate governance surrounding the implementation of guidance under a “principles-based” piece of guidance that was subsequently supplemented with additional “rules-based” guidance in order to better enforce the intent of the original guidance. Results: Many firms needed the subsequent “rules-based” guidance in order to comply with the original intent of the “principles-based” guidance. Corporate governance does not appear to determine compliance. Implications: These results should be of interest to practitioners and regulators, and are important given the ongoing movement toward principles-based standards. The SEC [2016] is exploring whether existing prescriptive guidance in Regulation S-K should be replaced with a principles-based framework for financial disclosures. Value: This paper capitalizes on a unique setting provide a fresh analysis in the debate between principles-based and rules-based accounting standards

Incivility in the Accounting Classroom: Have Educator Views Changed in the Last Decade?

This paper is a revisit of a 2010 paper titled “Incivility in the Accounting Classroom” where faculty were surveyed on their perceptions of incivility centered around student actions in the classroom. The information provided will be used to discern the importance and incidence of incivility in accounting education. Results will be compared to those of the 2010 survey to obtain comparative data and discern trends and emerging concerns. The survey was tweaked to modernize it and bring in questions relating to both online learning and teaching during the COVID-19 pandemic. Participants were selected from the American Accounting Association directory of accounting faculty. The survey has been sent out and we had 540 responses. This paper is in the early stages of development, and we are looking for to gather feedback and brainstorm ideas