Nos derniers articles

"Contrary to the conventional wisdom, we find that the client tends to spend fewer corporate resources on precision with audit risk disclosure. As a result of lower precision, audit risk disclosure may lower the informativeness of audited financial reports, albeit ex-post communicating more information to the market. We also find that audit risk disclosure reduces the client's ex-ante payoff when the auditor bears a high misstatement cost due to audit failure."

"Using several examples, the article contrasts these risk sentiments for companies that have been involved in financial fraud and the companies that have not been involved in financial fraud."

"Current reporting standards for insurers require a decomposition of observed profits and losses in such a way that changes in the insurer's balance sheet can be attributed to specified risk factors. Generating such a decomposition is a nontrivial task because balance sheets generally depend on the risk factors in a non-linear way. This paper starts from an axiomatic perspective on profit and loss decompositions and finds that the axioms necessarily lead to infinitesimal sequential updating (ISU) decompositions, provided that the latter exist and are stable, whereas the current practice is rather to use sequential updating (SU) decompositions. The generality of the axiomatic approach makes the results useful also beyond insurance applications wherever profits and losses shall be additively decomposed in a risk-oriented manner."