Work

Financial statement comparability and accounting fraud

Year: 2022

Type: article

Abstract: We examine the association between financial statement comparability and the likelihood of accounting fraud. Prior research documents a negative association between the quality of a firm's reporting environment and accounting fraud. We build on this literature and show that poor financial statement comparability is associated with a greater likelihood of accounting fraud. We also find that accounting comparability declines over time as the year of fraud detection approaches and that the association between comparability and fraud becomes more negative over this time. In addition, we find that financial statement comparability improves after fraud detection, consistent with the notion that managers improve their financial reporting quality after fraud.

Source: Journal of Business Finance &amp Accounting

DOI: 10.1111/jbfa.12652

Authors: Belen Blanco, Sandip Dhole, Ferdinand A. Gul

Institutions: The University of Adelaide, Monash University, Deakin University, Sunway University

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W4296041711

FWCI: 13.6

Cites: 60

Cited by: 39

Related to: 10