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

Sugata Roychowdhury, Nemit Shroff*, Rodrigo S. Verdi

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

23 Scopus citations

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.

Original languageEnglish (US)
Article number101246
JournalJournal of Accounting and Economics
Volume68
Issue number2-3
DOIs
StatePublished - Nov 1 2019
Externally publishedYes

Keywords

  • Accounting
  • Disclosure
  • Financial reporting
  • Information asymmetry
  • Investment
  • Real effects

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

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