The effects of financial reporting and disclosure on corporate investment: A review

Sugata Roychowdhury, Nemit Shroff and Rodrigo S. Verdi

Journal of Accounting and Economics, 2019, vol. 68, issue 2

Abstract: A fundamental question in accounting is whether and to what extent financial reporting facilitates the allocation of capital to the right investment projects. Over the last two decades, a large and growing body of literature has contributed to our understanding of whether and why financial reporting affects investment decision-making. We review the empirical literature on this topic, provide a framework to organize this literature, and highlight opportunities for future research.

Keywords: Disclosure; Financial reporting; Accounting; Investment; Real effects; Information asymmetry (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (127)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaecon:v:68:y:2019:i:2:s0165410119300412

DOI: 10.1016/j.jacceco.2019.101246

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