perspective taking

Description We examine the effect of perspective taking on auditors’ ability to evaluate managers’ reported earnings and, in turn, contribute to high-quality financial reporting. Using an experimental-economics approach, we design two experiments to investigate auditor – manager interactions. In...

Description Security laws and accounting standards suggest that reasonable investors' expectations are an important consideration for disclosure judgments. Regulators have expressed concerns that many disclosure judgments are made without adequate consideration of how investors would evaluate...