Financial reporting under economic policy uncertainty

Peterson Ozili

Journal of Financial Reporting and Accounting, 2020, vol. 19, issue 2, 325-338

Abstract: Purpose - This paper aims to discuss financial reporting under economic policy uncertainty. Design/methodology/approach - The paper uses discourse analysis to examine financial reporting under economic policy uncertainty. Findings - The paper identifies the link between economic policy uncertainty and financial reporting, in terms of earnings management and fair value accounting. It argues that high economic policy uncertainty will transmit fewer new information to firms which can motivate managers to influence accounting numbers in the direction of the desired financial reporting outcome. Originality/value - The relationship between economic policy uncertainty and financial reporting has not been studied. This paper is one of the first papers to relate economic policy uncertainty to financial reporting behavior.

Keywords: Economic policy uncertainty; Financial reporting; Accrual; Accounting quality; Policy uncertainty; Loan loss provisions; Earnings management; Fair value accounting; G21; M41; M40; M48; G32 (search for similar items in EconPapers)
Date: 2020
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Working Paper: Financial reporting under economic policy uncertainty (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfrapp:jfra-08-2020-0242

DOI: 10.1108/JFRA-08-2020-0242

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