Terrorist Attacks Lead to More Cautious Financial Reporting for Businesses, Study Finds
TORONTO, Ontario – Following a terrorist attack or mass shooting, businesses tend to exhibit more caution in their financial reporting, a recent study has found. The study, published in the British Accounting Review, discovered that the aftermath of such events leads to more pessimistic risk assessments of financial reporting choices and a decrease in accrual-based and real earnings management for companies located in the affected areas. Seda Oz, an assistant professor of accounting at the …