Complexity of financial reporting standards and accounting expertise

Roman Chychyla, Andrew J. Leone*, Miguel Minutti-Meza

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

77 Scopus citations


This study tests whether firms seek to mitigate the adverse effects of Financial Reporting Complexity (FRC) by investing in accounting expertise. We develop a measure of FRC based on the complexity of accounting standards that govern annual disclosures. We find that FRC is positively related to the accounting expertise on a firm's board of directors and audit committee. We also find that accounting expertise mitigates the relation between FRC and negative reporting outcomes. Collectively, this study increases our understanding of the actions firms take to mitigate the negative consequences of FRC, and the role of accounting expertise in this setting.

Original languageEnglish (US)
Pages (from-to)226-253
Number of pages28
JournalJournal of Accounting and Economics
Issue number1
StatePublished - Feb 2019

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


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