Academic Literature Review: Accounting Reporting Complexity and Non-GAAP Earnings Disclosure

The overall complexity of financial disclosures affects the ability of anyone reading the financial statements, including stockholders, regulators, and investors, to analyze and assess the information presented. One way to measure complexity of disclosures is by determining accounting reporting complexity … Continue reading

How to Predict Which Acquisitions Will Fail and Generate Negative Stock Returns

Summary of Key Findings It can be difficult to predict which acquisitions are going to fail An academic article using Audit Analytics’ data identified statistically significant negative abnormal returns of 12% for a subset of acquisitions that were excluded from … Continue reading

Literature Review: “The Effect of Enforcement Transparency: Evidence from SEC Comment-Letter Reviews”

In recent years, more attention has been given to policies surrounding transparency in financial reporting practices, such as banks disclosing results of stress tests and the recently proposed “Public Accounting Oversight Board (PCAOB) Enforcement Transparency Act of 2017”. In 2004, … Continue reading